Understanding how to use fx ratesCentria Bakery from Kokkola, Finland, has become recently very popular with its chocolate cakes made from raw chocolate ingredients from a Swiss chocolate company Chocolaté Fin SARL (Switzerland). For the holiday season, Centria Bakery intends to prepare at least 1 000 chocolate cakes so it needs to buy some delicate raw chocolate for 10 000 CHF to pay its Swiss chocolate supplier.Nordea banker quotes bid-ask rates of 1.3990-1.4000 CHF/EUR. (euro is the base currency).What is Centria Bakerys euro cost of the 10 000 Swiss francs for the raw chocolate?Give your answer with two decimals.5 232,6013 990,007 147,966 142,85

A pricing strategy is a plan or process for choosing the most competitive price for a good or…

Answered: Nordea banker quotes bid-ask rates of…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Understanding how to use fx rates

Centria Bakery from Kokkola, Finland, has become recently very popular with its chocolate cakes made from raw chocolate ingredients from a Swiss chocolate company Chocolaté Fin SARL (Switzerland).

For the holiday season, Centria Bakery intends to prepare at least 1 000 chocolate cakes so it needs to buy some delicate raw chocolate for 10 000 CHF to pay its Swiss chocolate supplier.

Nordea banker quotes bid-ask rates of 1.3990-1.4000 CHF/EUR. (euro is the base currency).

What is Centria Bakerys euro cost of the 10 000 Swiss francs for the raw chocolate?

Give your answer with two decimals.

5 232,60
13 990,00
7 147,96
6 142,85

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