Question

Country : Australia Chile Iceland New Zealand South Africa

Abalone Cost : AUD 93,500 CLP 50,990,000 ISK 5,400,000 NZD 104,000 ZAR 640,000

Exchange Rate: $1 U.S. = 1.1 AUD 585 CLP 61 ISK 1.3 NZD 7.8 ZAR

Refer to the table above. An international seafood supplier is offered 9.52 million yen today for 1000 pounds of abalone frozen in the shell. One thousand pounds of abalone can be sourced from various countries at the prices shown above. The current market exchange rates between the United States and the other relevant currencies are also shown. In addition, $1 U.S. = 102 yen. What is the value, in U.S. dollars, of the best deal the international seafood supplier can make?

A) $14,333 B) $14,833 C) $13,333 D) $12,333

Solution:

9.52 million / 102 yen = $93,333 ; cost = 104,000/1.3 NZD = $80,000; $93,333 - $80,000 = $13,333 .

Can someone explain to me why after calculating the yen cost we have to subtract from the NZD specifically? Why just New Zealand and not the other countries?

Answer 1