1. An American company wants to buy a television from a Chinese company. The Chinese company sells its TVs for 1,200 yuan each. The current exchange rate between the U.S.

dollar and the Chinese yuan is $1 = 6 yuan. How many dollars will the American company have to convert into yuan to pay for the television? LO27.1

a. $7,200.

b. $1,200.

c. $200.

d. $100.