A US based computer manufacture produces and sells laptops in South America thro
ID: 2803923 • Letter: A
Question
A US based computer manufacture produces and sells laptops in South America through two manufacturing facilities: one in Argentina and the other in Brazil. The following applies:
Argentina
Brazil
Investment price
200 million US$
200 million US$
Cost per Laptop
900 pesos
600 reals
Price per Laptop
1200 pesos
800 reals
Projected Annual Earnings
150 million pesos
100 million reals
Exchange Rate
Pesos 3 / US$
Reals 2/US$
What is the mark-up on the laptop in Argentina as a percentage of the cost?
15%
20%
25%
33%
Argentina
Brazil
Investment price
200 million US$
200 million US$
Cost per Laptop
900 pesos
600 reals
Price per Laptop
1200 pesos
800 reals
Projected Annual Earnings
150 million pesos
100 million reals
Exchange Rate
Pesos 3 / US$
Reals 2/US$
Explanation / Answer
Mark-up on the laptop:
= Markup/Cost
= (1,200-900)/900
= 300/900
= 33%
Hence, correct option is 33%
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