Sales Volume per Year 900 US Dollar Price of Annual Subscription 240 Spot Exchange Rate (MWK$) 771.83 Expected Spot Rate (MWK/$) 1082.95 Unit Volume Decrease if Price in MWK Increased 45 % This is a US cloud meeting firm selling subscription video conferencing online to Malawian businesses. Using the data above, calculate under Case 1- Same Malawian Kwacha (MWK) Price and Case 2- Same U.S Dollar Price a) US dollar price of a single subscription. b) Unit volume of sales of subscription. c) US dollar sales revenue of all subscription revenues
Sales Volume per Year 900 US Dollar Price of Annual Subscription 240 Spot Exchange Rate (MWK$) 771.83 Expected Spot Rate (MWK/$) 1082.95 Unit Volume Decrease if Price in MWK Increased 45 % This is a US cloud meeting firm selling subscription video conferencing online to Malawian businesses. Using the data above, calculate under Case 1- Same Malawian Kwacha (MWK) Price and Case 2- Same U.S Dollar Price a) US dollar price of a single subscription. b) Unit volume of sales of subscription. c) US dollar sales revenue of all subscription revenues
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 41QA
Related questions
Question
Assumptions Values
Sales Volume per Year 900
US Dollar Price of Annual Subscription 240
Spot Exchange Rate (MWK$) 771.83
Expected Spot Rate (MWK/$) 1082.95
Unit Volume Decrease if Price in MWK Increased 45 %
This is a US cloud meeting firm selling subscription video conferencing online to Malawian businesses. Using the data above, calculate under Case 1- Same Malawian Kwacha (MWK) Price and Case 2- Same U.S Dollar Price
a) US dollar price of a single subscription.
b) Unit volume of sales of subscription.
c) US dollar sales revenue of all subscription revenues.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you