Question: Valley Stores, a U.S. department store chain, annually negotiates a contract with Alpine Watch Company, located in Switzerland, to purchase a large shipment of watches.

Valley Stores, a U.S. department store chain, annually negotiates a contract with Alpine Watch Company, located in Switzerland, to purchase a large shipment of watches. On November 15, 2001, Valley purchased 10,000 watches for a total of 1.26 million Swiss francs. Refer to Table 2.2 and determine the following:

a. The total cost and cost per watch in U.S. dollars.
b. The total cost and cost per watch in U.S. dollars of 12,000 watches purchased on
February 20, 2004, assuming that Alpine's price per watch (in Swiss francs) remainsunchanged.

Table 2.2 Spot Foreign Exchange Rates Exchange Rate (U.S. Dollars November 15, 2001 February 20, 2004 Currenc Coun Australia Britain Canada India Dollar Pound Dollar Rupee Yen Rand Franc Euro $0.5183 $1.4322 $0.6302 $0.02084 $0.008173 $0.1046 $0.6020 $0.8819 $0.7703 $1.8601 $0.7480 $0.02209 $0.009167 $0.1491 $0.793 $1.2524 Japan South Africa Switzerland European Union

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