| How many percent does UK subsidiary contribute to the total profit in 2016-2017 period? |
| All answer must be rounded to 4-number after decimal place |
- this is the full chart I was given.
-the photo is complete, this is everything i was given, if you can't view it on your device idk what to tell you, but please stop commenting that something is missing, it is not. if you don't know how to solve it then move on.
| Profit in local currency | |||||
| Subsidiary | Mexico | British | Germany | Chile | United States |
| Profit | MXN | GBP | EUR | CLP | USD |
| 2016 | 29,000,000 | 1,500,000 | 1,000,000 | 200,000,000 | 1,200,000 |
| 2017 | 30,000,000 | 1,000,000 | 1,200,000 | 320,000,000 | 1,000,000 |
| 2018 | 31,000,000 | 2,000,000 | 1,200,000 | 360,000,000 | 1,000,000 |
| Exchange Rate | |||||
| USD1= | GBP1= | EUR1= | USD1= | USD1= | |
| 2016 | 17 | 1.3 | 1.12 | 657 | 1 |
| 2017 | 19 | 1.28 | 1.11 | 600 | 1 |
| 2018 | 21 | 1.25 | 1.2 | 700 | 1 |
The profit that UK subsidiary contributes during 2016-17 is GBP 1,500,000. Here, exchange rate during 2016-17 for UK was, 1GBP = 1.3 USD.
Please note, the exchange rates are given with reference to USD currency. In order to compare the values or do any calculations, we need to convert the local currency values to USD currency values.
So, the profit for UK for year 2016-17 in terms of USD is: 1,950,000 USD ------------------------------------------ (1)
Now, in order to calculate the profit for UK subsidiary in terms of total profit across subsidiaries, we need to find out the respective profit values in terms of USD for the year 2016-17.
For Mexico, it is 29,000,000 MXN
Here, exchange rate given is 1USD= 17 MXN
Therefore, the profit in terms of USD is: 1705882.3529 USD.
For Germany, it is 1,000,000 EUR
The exchange rate is: 1 EUR = 1.12 USD
Therefore, the profit in terms of USD is: 1,120,000 USD.
For Chile, it is 200,000,000 CLP
The exchange rate is: 1USD = 657 CLP
Therefore, the profit in terms of USD is: 304414.0030 USD
For USA, it is 1,200,000 USD. We don't need to convert this currency as it is already in terms of USD.
So, total profit for year 2016-17 is: 1,950,000 +1,705,882.3529 + 1,120,000 + 3,04,414.0030 + 1,200,000 USD
= 6,280,296.3559 USD ------------------------------------ (2)
So, the profit the UK subsidiary contributes in terms of percentage of total profit in year 2016-17 is:
1950000/6280296.3559
= 31.0495%
How many percent does UK subsidiary contribute to the total profit in 2016-2017 period? All answer...