In order to encourage Canadians to avoid cross border shopping, Walmart Canada is striving to keep the price of electronics in Canada equivalent to the price of electronics in its US stores before taxes. If a TV is sold for $700 in US stores, what should be the sale price of the same TV in Canadian stores? Use the exchange rate of US$0.966 per C$.
A) $700
B) $724.64
C) $676.20
D) $641.27
E) $619.47

Question

Quizplus · Accepted Answer

To find the equivalent price of the TV in Canadian stores, we need to convert the US price to Canadian dollars using the exchange rate of US$0.966 per C$:
$700 / 0.966 = C$724.64
Therefore, the sale price of the same TV in Canadian stores should be C$724.64 to match the US price before taxes.

In Order to Encourage Canadians to Avoid Cross Border Shopping