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Suppose an American investor is given the current exchange rates in the following table. The listed quotations are quotations stated in American terms. Exchange Rate
Suppose an American investor is given the current exchange rates in the following table. The listed quotations are quotations stated in American terms. Exchange Rate British pound () $1.8790 / pound Euro () $1.3780 / euro Australian dollar (AU$) $0.8760 / Australian dollar Given these rates, an Australian dollar can purchase British pounds. Green Caterpillar Garden Supplies Inc. is a U.S.-based firm that produces stereos in Germany at a cost of 115 (including production and transportation costs) and sells them in England for 92. Based on the exchange rate table given in the preceding question, what is Green Caterpillar Garden Supplies Inc.'s dollar profit for each unit sold? $15.12 O $17.28 $14.40 O $16.56
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