Question
A retailer imports packages of Ariel laundry detergent pods from the United Kingdom. The cost price in the United Kingdom is Original Cost GBP .
A retailer imports packages of Ariel laundry detergent pods from the United Kingdom. The cost price in the United Kingdom is Original Cost GBP. (Due to the Canada UK Free Trade Agreement, there is no Canadian customs duty payable on the product.) The exchange rate is Original CAD-GBP Exchange Rate. (At the moment the CAD is worth less than the GBP.) Due to the costs incurred to import the product to Canada, the retailer uses the Original Target Margin %. As a result of the ongoing political chaos, including but not limited to three (3) UK prime ministers in two (2) months, the United Kingdom currency continues to lose value and the exchange rate changes to New CAD-GBP Exchange Rate. The retailer wants to try to make a bit more profit on its sales of Ariel laundry detergent pods, and so has a New Target Margin %.
You need to calculate the following.
-The original cost price in CAD
-The original retail price in CAD
-The new cost price in CAD
-The new retail price in CAD
Original Cost GBP | 23.04 |
Original CAD-GBP Exchange Rate | $ 1.74 |
Original Target Margin % | 20.20% |
New CAD-GBP Exchange Rate | $ 1.52 |
New Target Margin % | 24.75% |
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