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Percentage margin the company

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Jaguar has full manufacturing costs of their S-type sedan of £22,803. They sell the S-typein the UK with a 20% margin for a price of £27,363. Today these cars are available in theUS for $55,000 which is the UK price multiplied by the current exchange rate of $2.01/£.Jaguar has committed to keeping the US price at $55,000 for the next six months. If theUK pound appreciates against the USD to an exchange rate of $2.15/£, and Jaguar has nothedged against currency changes, what is the percentage margin the company will realizegiven the new exchange rate?

Reference no: EM131179282

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