Fissler AG, headquartered in Germany, records all of it sales worldwide in euros. Its USA division realized sales of €2,675,000 last year when the exchange rate was $1.33/€ and sales of €2,355,000 this year when the exchange rate was $1.48/€. What was the percent change in euro revenues for Fissler for the USA division over the last year?

Question

Quizplus · Accepted Answer

First, we need to convert last year's sales to dollars:

€2,675,000 x $1.33/€ = $3,560,750

Then, we can find the percent change by using the formula:

[(New Value - Old Value)/Old Value] x 100%

[(€2,355,000 x $1.48/€) - $3,560,750]/$3,560,750 x 100%

= -11.96%

Therefore, the percent change in euro revenues for Fissler for the USA division over the last year was a decrease of 11.96%, which corresponds to answer choice B.

Fissler AG, Headquartered in Germany, Records All of It Sales