Valley Stores, a U.S. department store chain, annually negotiates a contract with Alpine Watch Company, located in Switzerland, to purchase a large shipment of watches.
On November 15, 2001, Valley purchased 10,000 watches for a total of 1.26 million Swiss francs. Refer to Table and determine the following:
a. The total cost and cost per watch in U.S. dollars
b. The total cost and cost per watch in U.S. dollars of 12,000 watches purchased on February 20, 2004, assuming that Alpine's price per watch (in Swiss francs) remains unchanged.
