ACME INDUSTRIAL PUMPS-B Situation 6: Management Responds, Part 2 You reduce the contracted price to $700 U.S. = 700 BP, to support your distributor. a. What is your distributor's profit situation? b. What is your profit situation in the U.S.? Situation 7: The U.K. Imposes a Tariff on Imports from China A few months after your new arrangement, the U.K. imposes a 20% tariff on goods imported from China into the U.K. The tariff is calculated based on the import cost of the good in pounds. a. How much will the tariff be? b. If you decide to pay the tariff, what's your new profit picture? Group Members 5 points per situation: Your total score = ACME INDUSTRIAL PUMPS-B Situation 6: Management Responds, Part 2 You reduce the contracted price to $700 U.S. = 700 BP, to support your distributor. a. What is your distributor's profit situation? b. What is your profit situation in the U.S.? Situation 7: The U.K. Imposes a Tariff on Imports from China A few months after your new arrangement, the U.K. imposes a 20% tariff on goods imported from China into the U.K. The tariff is calculated based on the import cost of the good in pounds. a. How much will the tariff be? b. If you decide to pay the tariff, what's your new profit picture? Group Members 5 points per situation: Your total score =