BMW manufactures their sports activity vehicles they sell in the U$.$S$.$ in Sparanburg, South Carolina. However, their top selling passenger car, the $3-$series $330$i$,$ continues to be manufactured in Munich, Germany. The base platform for the BMW $330$i currently runs $42,000.$ The spot rate of the U$.$S$.$ dollar against the European euro has recently moved from $$1\mathrm{.}0672/$ to $$1\mathrm{.}1035/.$ How does this change the price of the $330$i to BMW$\text{'}$s U$.$S$.$ subsidiary in U$.$S$.$ dollars?

What if analysis: What if BMW kept the same export price in U$.$S$.$ dollars? What would this do to BMW$\text{'}$s margins when they consolidated results in European euro?