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so some candidates they might just skip to calculating the answer but i want to start by making sure we understand the foreign currency flow based on what the question tells us so it says that the us manufacturer they have a production operation in mexico now mexico which has a currency of pesos that is where the product is being produced and that is where the cost is being incurred right so the cost for the product is in pesos now mexico then ships it to europe and that is where its sold to the end customer so the company is receiving revenue from customers in euros so now we have two different currencies but ultimately the parent company is located in the us so everything must be converted to usd and ultimately we need to figure out what the profit on the transaction is right so were gonna have to convert both the cost and the revenue subtract the cost from the revenue that will give us the profit on the sale so well start by converting the sale price in euros to usd now it says t
