Question
Jaguar has full manufacturing costs of their S-type sedan of 22,803. They sell the S-type in the UK with a 20% margin for a price
Jaguar has full manufacturing costs of their S-type sedan of 22,803. They sell the S-type in the UK with a 20% margin for a price of 27,363. Today these cars are available in the US for $55,000 which is the UK price multiplied by the current exchange rate of $2.01/ . Jaguar has committed to keeping the US price at $55,000 for the next six months. If the UK pound appreciates against the USD to an exchange rate of $2.15/ , and Jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?
A. 22,803
B. 27,363
C. 25,581
D. 55,000
Answer is C, need work
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