Question

murray exports (u.s.) exports heavy crane equipment to several chinese dock facilities. sales are currently 10,000 units per year at the yuan equivalent of $24,000 each. the chinese yuan (renminbi) has been trading at yuan8.20/$, but a hong kong advisory service predicts the renminbi will drop in value next week to yuan9.00/$, after which it will remain at that rate for the foreseeable future. based onthis forecast, murray exports faces a pricing decision in the face of the impending devaluation. ıt may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in china to offset the devaluation, and experience a 10% drop in unit volume. ın both cases, direct costs per unit are 75% of the current u.s. sales price of $24,000. HOW TO CALCULATE US DOLLAR PRICE PER UNIT CASE 1. CAN YOU EXPLAIN?

          murray exports (u.s.) exports heavy crane equipment to several chinese dock facilities. sales are currently 10,000 units per year at the yuan equivalent of $24,000 each. the chinese yuan (renminbi) has been trading at yuan8.20/$, but a hong kong advisory service predicts the renminbi will drop in value next week to yuan9.00/$, after which it will remain at that rate for the foreseeable future. based onthis forecast, murray exports faces a pricing decision in the face of the impending devaluation. ıt may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in china to offset the devaluation, and experience a 10% drop in unit volume. ın both cases, direct costs per unit are 75% of the current u.s. sales price of $24,000.  HOW TO CALCULATE US DOLLAR PRICE PER UNIT CASE 1. CAN YOU EXPLAIN?

murray exports us exports heavy crane equipment to several chinese dock facilities sales are currently 10000 units per year at the yuan equivalent of 24000 each the chinese yuan renminbi has been trad

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