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An Emarati Manufacturer imports is parts from America and assembles its products in Emirates then exports some of the fi ished product back to America
An Emarati Manufacturer imports is parts from America and assembles its products in Emirates then exports some of the fi ished product back to America to sell at retail. suppose the total cost of of the imported parts purchased and paid for in amercian funds is USD 5 per unit assembly costs are AED 20 per unit and expenses are AED 4 per unit. the exchange rate is AED to USD of 0.056.
if the product is exported back to America at a selling price of USD 8 ( for which american customers pay in amerixan funds) what is the total profit margin in american dollars on 10000 units if the AED exhange rafe depreciates by 0.015 AED per USD. before selling the assembles product after purchasing the parts
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