Q20. The Refill Producers Corp. is a US retail outlet for high-quality peanut oils. One of the major suppliers of peanut oil for the company is a farm in Italy. Refill must pay the Italian farm 5.00 euros per liter of peanut oil it purchases. Refill Producers would like to purchase 7,000 liters of the Italian farms peanut oil next year.

Currently, it costs 0.900 euros to purchase 1 US dollar. If the exchange rate remains constant, how much will it cost the Refill Corp. (in US dollars) to purchase the 7,000 liters? If the exchange rate changes so that it costs 0.8599 euros to purchase 1 US dollar, how much will it cost to purchase the 7,000 liters of peanut oil? Show your calculations.