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  3. conditional f ormatting font in this exercise you will determine...

Question: conditional f ormatting font in this exercise you will determine...

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Conditional F ormatting Font In this exercise you will determine the effect of currency rate changes on profits. In Part 1, a U.S. based company produces wine in the U.S. and exports the wine to Europe. The cost of production is $8 per bottle and the price in Europe is 15 per bottle. In Part 2, a U.S. based company produces wine in Europe and imports the wine to the US. The cost of production is 6 per bottle and the price in the U.S. is $15 per bottle. In both parts, the companies experience a change in the exchange rate between Euros and Dollars as follows: November 22, 2016 exchange rate: (S per )$1.06 1.00 or ( per $) $1.00-0.9 February 16, 2018 exchange rate: (S per $1.251.00 or (C per $) $1.00 0.8 s note the dollar weakened between November 2016 and February 2018. 6 In both parts, the companies sell 5000 bottles in both scenarios; selling in the U.S. and selling in Europe Remember that profit Revenue (selling price per unit X number of units sold)-Cost (cost per unit X number of units sold) 9 Determine the revenue, costs and profits for each scenario o Part 1: U.S. Exporter of wine (profits reported in US dollars Sheet1 O Type here to search 5 6 WE
Revenue: C 15 price per bottle X 5000 bottles-C 75,000 revenue X Cost: $8 per unit cost X 5000 bottles . 6: S/C (convert revenue to $) (cost is in $) Profit- Revenue-Cost (profit in $) Revenue: C15 price per bottle x 5000 bottles-C75 000 revenue x Cost:SS per unit cost X 5000 bottles L □sic.[ ](convert revenue to S) 18: cost is in $) Profit Revenue-Cost(proft in $ S. Impo Revenue: $15 price per bottle X 5000 bottles Cost: € 6 per unit cost X 5000 bottles ( 30,000 X Profit - Revenue Cost profit in ) □ ]S/C : (convert cost to $) Revenue: $15 price per bottle X 5000 bottles !(revenue in S) 018: Cost: €6 per unit cost X5000 bottles-( 30,000 x (convert cost to S) Sheet1 O Type here to search
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