Global Concerns, Inc. has contracted to sell certain goods to a company in Australia. The Australian company has contracted to pay 500,000 Australian dollars for the shipment. At the time the contract was signed, the Foreign Currency in dollars column in the financial section of the morning paper showed that one Australian dollar was valued at $0.903497 U.S. currency. Between the date the contract was signed and the date on which payment was received, the Australian dollar fell to a value of $0.8740. Compute the amount Global Concerns gained or lost by agreeing to accept payment in Australian dollars instead of U.S. dollars.

Question

Global Concerns, Inc. has contracted to sell certain goods to a company in Australia. The Australian company has contracted to pay 500,000 Australian dollars for the shipment. At the time the contract was signed, the Foreign Currency in dollars column in the financial section of the morning paper showed that one Australian dollar was valued at $0.903497 U.S. currency. Between the date the contract was signed and the date on which payment was received, the Australian dollar fell to a value of $0.8740. Compute the amount Global Concerns gained or lost by agreeing to accept payment in Australian dollars instead of U.S. dollars.​

Quizplus · Accepted Answer

The Answer of Global Concerns, Inc. has contracted to sell certain goods to a company in Australia. The Australian company has contracted to pay 500,000 Australian dollars for the shipment. At the time the contract was signed, the Foreign Currency in dollars column in the financial section of the morning paper showed that one Australian dollar was valued at $0.903497 U.S. currency. Between the date the contract was signed and the date on which payment was received, the Australian dollar fell to a value of $0.8740. Compute the amount Global Concerns gained or lost by agreeing to accept payment in Australian dollars instead of U.S. dollars.​