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Calculate the mexican company anticipated profits

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A Mexican company sells 10,000 jars of honey in the U.S. for $10 per jar. The company records its accounts in pesos. It costs 60 pesos to produce, package and ship the honey. Assume all the costs for the company are in Mexican pesos. When the peso changes from 10 Pesos:1 USD to 12 Pesos:1 USD, the company decides to lower its price by $2 per jar. You anticipate you can sell 20% more jars of honey with the lower price.

Calculate the Mexican company's anticipated profits from if it lowers prices.

Reference no: EM132818011

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