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An importer wants to purchase N high quality cameras from Ge

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mikemcgarry
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An importer wants to purchase N high quality cameras from Ge [#permalink] New post   11 Aug 2014, 11:34
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68% (02:49) correct 32% (02:53) wrong based on 325 sessions
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An importer wants to purchase N high quality cameras from Germany and sell them in Japan. The cost in Germany of each camera is E euros. He will sell them in Japan at Y yen, which will bring in a profit, given that the exchange rate is C yen per euro. Given the exchange rate of D US dollars per euro, which of the following represents his profit in dollars?

(A) N(YC - DE)

(B) ND(YC - E)

(C) ND[(Y/C) - E]

(D) N[(Y/C) - DE]

(E) ND(Y - E)/C

For the OE to this problem, as well as a discussion of GMAT problems on Ratios & Rates, see:
https://magoosh.com/gmat/2014/rates-and-ratios/

Mike :-)
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vad3tha
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Re: An importer wants to purchase N high quality cameras from Ge [#permalink] New post   11 Aug 2014, 14:37
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mikemcgarry wrote:
An importer wants to purchase N high quality cameras from Germany and sell them in Japan. The cost in Germany of each camera is E euros. He will sell them in Japan at Y yen, which will bring in a profit, given that the exchange rate is C yen per euro. Given the exchange rate of D US dollars per euro, which of the following represents his profit in dollars?
(A) N(YC - DE)
(B) ND(YC - E)
(C) ND[(Y/C) - E]
(D) N[(Y/C) - DE]
(E) ND(Y - E)/C

For the OE to this problem, as well as a discussion of GMAT problems on Ratios & Rates, see:
https://magoosh.com/gmat/2014/rates-and-ratios/

Mike :-)


I think the BOLD text "He will sell them in Japan" should be "He will sell each of them in Japan". If he sells them ( all of N cameras) at Y yen, the answer will change a lot.

If he sell each of them at Y Yen, here is my solution:
Costs in Euro: E * N ( Euro)
Sales in Yen: N*Y (Y) --> Sales in Euro = N*Y/C (Y)
Profit: Sales - Costs = N*Y/C - E*N (Euro)
--> profit in USD = D*(N*Y/C - E*N) = D*N*(Y/C-E)

Answer is C
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Re: An importer wants to purchase N high quality cameras from Ge [#permalink] New post   13 Aug 2014, 22:55
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Purchase from Germany

Quantity = n

Price = e euro

Total Cost = ne .............. (1)

Sell in Japan

Quantity = n

Price = y yen \(= \frac{y}{c}\) euro

Total Sell \(= \frac{ny}{c}\) ..................... (2)

Total Profit (In Euro) = (2) - (1)

\(= \frac{ny}{c} - ne\)

Total Profit (In Dollars)

\(= d(\frac{ny}{c} - ne)\)

\(= nd(\frac{y}{c} - e)\)

Answer = C
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Re: An importer wants to purchase N high quality cameras from Ge [#permalink] New post   13 Aug 2014, 23:12
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[quote="mikemcgarry"]An importer wants to purchase N high quality cameras from Germany and sell them in Japan. The cost in Germany of each camera is E euros. He will sell them in Japan at Y yen, which will bring in a profit, given that the exchange rate is C yen per euro. Given the exchange rate of D US dollars per euro, which of the following represents his profit in dollars?
(A) N(YC - DE)
(B) ND(YC - E)
(C) ND[(Y/C) - E]
(D) N[(Y/C) - DE]
(E) ND(Y - E)/C

Let us plug in:
N = 4, E = 3, Y = 8, C = 2, D = 2
The exchange rate is 2 yen per euro which means every euro is equal to 2 yen.
Cost 3 x 2 = 6 Yen
Revenue = 8 Yen
Profit per unit = 2 Yen
Total Profit = 2 x 4 = 8 Yen which is equal to 4 Euros
The exchange rate is 2 $ per euro hence the profit is 8 $.
Hence our target is 8:

(A) N(YC - DE) = 4 (16 - 6) ELIMINATED
(B) ND(YC - E) = 8 (16 - 3) ELIMINATED
(C) ND[(Y/C) - E] = 8 (4 - 3) = 8
(D) N[(Y/C) - DE] = 4 ( 4 - 6) ELIMINATED
(E) ND(Y - E)/C[/color] = 8 (5)/(2) ELIMINATED
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Re: An importer wants to purchase N high quality cameras from Ge [#permalink] New post   21 Oct 2020, 23:48
Cost per Camera = E (euros)



Selling Price per Camera = Y (yen) * [1 (euro) / C (yen) ] = Y/C (euro)


Profit in Euros = (Selling Price per Camera) * N Cameras - (Cost per Camera) * N Cameras

Profit in Euros = (Y/C) * N - (E) * N

----take N as Common-----

Profit in Euros = N * [(Y/C) - E]



Lastly, need to convert to Dollars: D (dollars) / 1 (euro)


N * [ (Y/C - E ] (euros) * [ D ($) / 1 (euro) ] =


N * D * [ (Y/C) - E] Dollars Profit

Answer -C-
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An importer wants to purchase N high quality cameras from Ge [#permalink] New post   07 Sep 2023, 11:46
If we got less dollars per euro (let's say $0.5 for every €1), would we divide the profit with D? If yes, how do we know which case is applicable here - that is, whether we have more dollars per euro or more euro per dollar?
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An importer wants to purchase N high quality cameras from Ge [#permalink]
07 Sep 2023, 11:46
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