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crosoft charges 180 for its upgrade of Windows 10 in UK. It costs Microsoft 40 per upgrade to package the upgrade (box, booklet diskettes, shrink-wrap,
crosoft charges 180 for its upgrade of Windows 10 in UK. It costs Microsoft 40 per upgrade to package the upgrade (box, booklet diskettes, shrink-wrap, etc.). This cost is not expected to change; owever, the British pound has been depreciating. If it falls from $1.87 to $1.67, what price will Microsoft have to charge to maintain its dollar profit margin? )2 x167 ,- ,bY) 2. Cummins Engine Company of Columbus, Indiana, is the largest independent manufacturer of new and replacement diesel engines for heavy trucks, construction, mining, and agricultural machinery. GMC, Ford, and Daim'er-Benz are their major competitors, and38 dercent of sales occur offshore. In the early 1980s, the Cummins and Daimler-Benz large diesel truck engines sell for approximately $40,000 and DM DM20410000. respectively. In 1985, th exehange rate between the dollar and deutschmarks rose to In 1985, how much would the comparable diesel engines sell for in Germany and in the US, respectively? Which diesel engines became more attractive to consumers? b. What options would Cummins have to deal with the rising exchange rate? What would happen to the cash flow of Cummins? uresse ihterest at Suppose you were the CEO of Cummins then. Given the options in b, which option would you choose? Carefully explain. c
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