DateDate1/9/1810/9/18Dollar RateDollar Rate1,16Price in Euros Price in Dollars Price in Dollars Difference1,18Model300 VRG625 RTM475 GRM200 GRM650 MTY600 RTM500 MTY46.900 €$55.342$54.404$93866.700 €$78.706$77.372$1.33496.100 €122.600 €164.900 €214.400 €247.300 €$113.398$111.476$1.922$144.668$142.216$2.452$194.582$191.284$3.298$252.992$291.814$248.704$286.868$4.288$4.9461) Most of your exports to the US belong to themodel 600 RTM. The experience shows that, if theprice of this product rises over 215000 dollars, theexported units will be reduced. If this product ispriced in euros, and assuming the trend shown inquestion 1 continues, what would be theconsequences for your company's exports?

The company is exporting its products to the US. There is exchange rate risk involved since the…

Date Date 1/9/18 10/9/18 Dollar Rate Dollar Rate 1,18 1,16 Model Price in Euros Price in Dollars Price in Dollars Difference 46.900 € 66.700 € 300 VRG $55.342 $54.404 $938 625 RTM $78.706 $77.372 $1.334 475 GRM 96.100 € $113.398 $111.476 $1.922 122.600 € 164.900 € 214.400 € 247.300 € 200 GRM $144.668 $142.216 $2.452 650 MTY $194.582 $191.284 $3.298 600 RTM $252.992 $248.704 $4.288 500 MTY $291.814 $286.868 $4.946 1) Most of your exports to the US belong to the model 600 RTM. The experience shows that, if the price of this product rises over 215000 dollars, the exported units will be reduced. If this product is priced in euros, and assuming the trend shown in question 1 continues, what would be the consequences for your company's exports?

Date Date 1/9/18 10/9/18 Dollar Rate Dollar Rate 1,18 1,16 Model Price in Euros Price in Dollars Price in Dollars Difference 46.900 € 66.700 € 300 VRG $55.342 $54.404 $938 625 RTM $78.706 $77.372 $1.334 475 GRM 96.100 € $113.398 $111.476 $1.922 122.600 € 164.900 € 214.400 € 247.300 € 200 GRM $144.668 $142.216 $2.452 650 MTY $194.582 $191.284 $3.298 600 RTM $252.992 $248.704 $4.288 500 MTY $291.814 $286.868 $4.946 1) Most of your exports to the US belong to the model 600 RTM. The experience shows that, if the price of this product rises over 215000 dollars, the exported units will be reduced. If this product is priced in euros, and assuming the trend shown in question 1 continues, what would be the consequences for your company's exports?

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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