A dealership sells a foreign built Tesla model X for $21,850.When the current exchange rate...

A dealership sells a foreign built Tesla model X for $21,850. When the current exchange rate is £109.84/$, what is the profit margin if the car costs £1,850,000?

Expert Solution

Cost price = Pound 1,850,000

Selling Price = Dollar 21,850

Exchange rate = Pound 109.84 per Dollar

Converting the cost price in dollar value,

Cost Price = 1850000/109.84 = Dollar 16842.68

So, Profit Margin in Dollar = 21850 - 16842.48 = Dollar 5007.32

jeff jeffy answered 2 years ago

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