What is the perspective of the italian headquarters

Assignment Help Business Management

Reference no: EM133455759

Molto Delizioso: Pricing and Profits Following Brexit Devaluation Assignment

Questions:

1. Recalculate the income statement in Exhibit 1 using the post-Brexit exchange rate of £1.00 = € 1.16 assuming that there are no changes to the prices charged by the company to U.K. buyers. Assume that fixed costs remain fixed and that variable costs vary proportionally to volume or quantity sold. Calculate the profit in both pounds and euros.

2. Recalculate the income statement in Exhibit 1 using the post-Brexit exchange rate of £1.00 = € 1.16 assuming that there the U.K. subsidiary prices increases its price to U.K. buyers to £ 235 per unit. Assume that fixed costs remain fixed and that variable costs vary proportionally to volume or quantity sold. Assume that the U.K. purchaser' consumer behavior is somewhat elastic and that market research suggests their elasticity = 1.1 Using the simple price elasticity formula calculate the profit in both pounds and euros.

3. Recalculate the income statement in Exhibit 1 using the post-Brexit exchange rate of £1.00 = € 1.16 assuming that there the U.K. subsidiary prices increases its price to U.K. buyers to £ 235 per unit. Assume that fixed costs remain fixed and that variable costs vary proportionally to volume or quantity sold. Assume that the U.K. purchaser' consumer behavior is somewhat elastic and that market research suggests their elasticity = .8 Using the simple price elasticity formula calculate the profit in both pounds and euros.

4. Which of the three options should Montague choose? What is the perspective of the Italian headquarters?

Reference no: EM133455759

Questions Cloud

What is organizational culture : What is organizational culture and why is it in personal and professional meetings?

How you would start a walking group : The presentation must include the physical and mental benefits of walking, personal and community benefits of starting a walking group, and how you would start

Describe how a family may experience that challenge : Choose a challenge from this list in the lesson content folder online lecture The Challenges of Involving Families in Children's Education.

Who are your competitors : What are the political, economic, social and technological factors that affect your communication planning? (Answer any that apply.)

What is the perspective of the italian headquarters : Which of the three options should Montague choose? What is the perspective of the Italian headquarters?

Relationship between social networks and ecological : Relationship between social networks and ecological and business systems and discuss the implications for addressing sustainability issues in your organization.

What are the key elements of cultural literacy : What are the key elements of cultural literacy? Use current examples (from the past 3 months) to illustrate your comments.

What happened to turkish lira in 2021 : What happened to Turkish Lira in 2021? Why did that happen? What was its impact on Turkish business and Turkish people?

How would you ease those fears in the design of your carbon : When designing environmental policy, when are price-based mechanisms preferred to quantity-based mechanisms? Why?

User Account

All Pages