Last year, the French marketing subsidiary of International Pharmaceuticals Corporation, (IPC) a New Jersey based drug manufacturer, earned 700,000 euros. This year, partly due to a weaker U.S. dollar, the French subsidiary will earn 900,000 euros. Last year the exchange rate was 1.2 euros per dollar, and this year, it is 1.0 euros per dollar. Calculate how many US dollars the French subsidiary contributes to IPCs earnings in each year.
We use the exchange rate to calculate the earnings in U.S. $. Last year the earnings in Euro were 700,000. The exchange ...
The solution explains how to caclulate the earnings in dollars given the earnings in euros