Dollars in the united states

Reference no: EM131007436

Suppose a car manufactured in Japan in the mid-1980s, when there were 250 yen to the dollar, cost 2 million yen to produce and was marked up 25% for sale in the United States. Assume the car's cost in yen and markup are the same today, but the exchange rate is 100 yen to the dollar.

a. What did the car sell for in dollars in the United States in the mid-1980s?

b. What does it sell for now?

Reference no: EM131007436

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