+598 Arcelor Mittal Dofasco can buy iron ore pellets from Minnesota at US$130 per short ton (2000 pounds) or from Labrador at C$175 per metric tonne (1000 kg). Which source is more expensive and by how much in C$ per metric tonne? (1 pound = 0.4536 kg, C$1.1400 = US$1.00) Weight and currency calculations should be to 4 decimal places; final answer rounded to the nearest cent.
Any help would be greatly appreciated thanks with calculations.
Arcelor Mittal Dofasco can buy iron ore pellets from Minnesota at US$130 per short ton (2000 pounds) or from Labrador at C$175 per metric tonne (1000 kg). Which source is more expensive and by how much in C$ per metric tonne? (1 pound = 0.4536 kg, C$1.1400 = US$1.00) Weight and currency calculations should be to 4 decimal places; final answer rounded to the nearest cent.
Any help would be greatly appreciated thanks with calculations
First, you have to make both the currencies and the kilo and pounds equivalent: So, we have:
$130 US X 1.14=$148.2 Canadian, then we also have:
2,000lb X .4536=907.2 Kilos. Now you can compare properly:
907.2 / 148.2=$6.12 Canadian dollars per Kilo from Minnesota.
1,000 / 175 =$5.71 Canadian dollars per Kilo from Labrador.
So, obviously the purchase from Minnesota is more expensive by:
$6.12 - $5.71=$.41 or 41 cents Canadian per Kilo.
P.S. Please use the same reasoning BUT, check my calculations!.
