Question

Suppose Jaguar (headquartered in UK) sells its XF model in the USA for $56,000 and currently...

Suppose Jaguar (headquartered in UK) sells its XF model in the USA for $56,000 and currently it’s selling 10,000 units annually. Also, the current exchange rate is $1.4 per pound.

a) Calculate Jaguar’s sales revenue in the US both in dollars and pounds (note: sales revenue=price * number of units).

b) What will happen to sales revenue in dollars and pounds if pound depreciates to $1.25 per pound, assuming Jaguar keeps charging the same price in the USA and keeps selling the same number of cars? Generalize how currency depreciates affects corporate bottom line.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose Jaguar (headquartered in the UK) sells its XF model in the USA for $80,000 and...
Suppose Jaguar (headquartered in the UK) sells its XF model in the USA for $80,000 and currently it’s selling 4,000 units annually. Also, the current exchange rate is $1.6 per pound. Calculate Jaguar’s sales revenue both in dollars and pounds. what will happen to sales revenue in dollars and pounds if pound appreciates to $2.0 per pound, assuming Jaguar keeps charging the same price in the USA and keeps selling the same number of cars? Generalize how currency appreciation affects...
P13-1 Prepare budgeted income statement and supporting budgets. Cook Farm Supply Company manufactures and sells a...
P13-1 Prepare budgeted income statement and supporting budgets. Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per      pound and 6 pounds of Tarr at $1.50 per...
1. Assume that Bradley Corporation Inc. produces advanced analytic software for computer simulations called Market-It. Based...
1. Assume that Bradley Corporation Inc. produces advanced analytic software for computer simulations called Market-It. Based on an analysis of product sales over a two-year period, Bradley’s marketing department estimates the demand for Market-It to be QM = 1,200 − 8PM + 4PS, where QM denotes units sold of Market-It software, PM denotes Market-It’s price, and PS denotes the price of a (competing) best-selling statistical software package (with both prices in dollars). a) Currently, PM = $200 and PS =...
Background Story Dorchester Ltd., is an old-line confectioner specializing in high-quality chocolates. Through its facilities in...
Background Story Dorchester Ltd., is an old-line confectioner specializing in high-quality chocolates. Through its facilities in the United Kingdom, Dorchester manufactures candies that it sells throughout Western Europe and North America (United States and Canada). With its current manufacturing facilities, Dorchester has been unable to supply the U.S. market with more than 225,000 pounds of candy per year. This supply has allowed its sales affiliate, located in Boston, to be able to penetrate the U.S. market no farther west than...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT