For its latest handbags, Gucci, the Italian luxury goods company, has decided to use a 85% pass-through. This is in response to the appreciation of 12% of the EUR against the USD. As a result of this price adjustment, the US buyers of Gucci handbag will absorb ____% of the euros appreciation against the US dollar. Gucci, the parent company in Italy will absorb _____% of the euros appreciation against the US dollar.

(pick one answer)

a) 12 / 85

b) 15 / 12

c) 15 / 85

d) 85 / 15