Detailed Answer
Answer (B) is correct. The firm can buy the chairs for A$38,340 since the costs of the chairs are B$60,000. B$1 is equal to A$0.639. Thus, the firm can purchase the chairs with A$38,340 using A$.639 multiplied by the B$60,000 cost (A$1 ÷ 1.565). Since the firm’s sales will be A 45,000 ( ,000 chairs × A$45 per chair), the firm would have a profit of A$6,660 (A$45,000 – A$38,340 cost).