Business Math Question : Currency

Question

The price of a 40 ounce bottle of rum at a US border duty-free store was US$24.95. At the same time, the price of a 750ml bottle of similar quality rum in an Ontario LCBO store was C$26.95 Using the Ontario price as the base, what is the percent saving?( on the unit price) by buying rum at the duty free store? ( 1litre=35.2 fluid ounces) ... C$1.00 =US$0.92149

Answer 1

Since you want to use the Canadian price - change the US amount to Canadian dollars.  $24.95*1.0852 = $27.08

divide the price $27.08 by the ounces 40 to determine price per ounce   27.08 / 40 = $0.68 per ounce

 

Now the 750ml is .75l, so multiply the 35.2 ounces by .75 which equals 26.4 ounces . Find the price per ounce

 

C$26.95 / 26.4 = $1.02 per ounce

 

Now the savings per ounce is 1.02 - .68 = C$0.34 or  .34 / 1.02 = 33.3% savings