Business, 10.03.2020 06:10 dubose8872

Jaguar has full manufacturing costs of their Sminustype sedan of pound22,803. They sell the Sminustype in the UK with a 20% margin for a price of pound27,363. Today these cars are available in the US for $55,000 which is the UK price multiplied by the current exchange rate of $2.01/pound. Jaguar has committed to keeping the US price at $55,000 for the next six months. If the UK pound appreciates against the USD to an exchange rate of $2.15/pound, and Jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?

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Jaguar has full manufacturing costs of their Sminustype sedan of pound22,803. They sell the Sminusty...

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