Marla G. answered 06/12/19
Masters Degree in Applied Statistics with 20+ Years of Work Experience
Since we are asked to determine the 'best buy', we need to either convert the Tokyo price and quantity into US units of measure, or convert the US price and quantity info into Japanese units of measure, to compare 'apples to apples' and answer the question.
Although you can choose which measurement to convert first, in this problem I will convert the Japanese Yen and kg into the U.S. dollar and pound: we're given the conversion factors, so to convert kgs to pounds:
[(738yen/kg)* 2.2]=1623.6yen/2.2 kg,
Since we know 2.2 kg is the same as 1 pounds, so we know cost of 1 lb. of tomatoes is 1623.6yen.
Now we need to convert the 1623.6Yen into US dollars: we know that 1US dollar=109.5 Yen, so to calculate how many US dollars=1623.6Yen simply solve the following equation:
1 dollar = x dollars
109.5 Yen 1323.6 Yen. (cross multiple & divide) yields:
1*1323.6=x*109.5
1323.6 = x, so x=12.0876, to the nearest cent: x=12.09
109.5
We're not done yet...Now we need to answer the question:Which is the better buy?
To do this compare the cost of 1 pound of tomatoes: in the US it's 1.49/lb. and in Tokyo it's 12.09/lb.
Answer: Based on these calculations, it appears that tomatoes in the US are a 'better buy' compared to the costs of tomatoes in Tokyo.