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a) Tesla plans on introducing a new four-door luxury automobile in 2026 called the Xeta to be produced in Germany. Although pricing is not
a) Tesla plans on introducing a new four-door luxury automobile in 2026 called the Xeta to be produced in Germany. Although pricing is not yet set, some analysts believe the basic production model will be sold in Europe at a price of 90,000. At this price they believed the company stood to earn a 20% margin on each car the cost of the Xeta had to be 80% of price. If the spot rate in 2026 is forecasted to be $1.2400/, what would be its projected price in the United States? b) If the price in the US market was set at $120,000, and the spot exchange rate averaged $1.240/, what would the margin on the Xeta be?
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