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What is new sales price if the eur depreciates

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Question 1: Your company has a pass-through policy of 50%. Assuming that you are an exporter and that your local sales price in the Eurozone is EUR 5.00 per unit of output, what is your new sales price if the EUR depreciates by 15% relative to the USD?

Choices

Option 1: EUR 7.21

 

Option 2: EUR 5.03

Option 3: EUR 5.44

Option 4: EUR 5.63

Reference no: EM132484151

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