Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 1 of 11 Points: 0 of 1 Save Peng Plasma Pricing. Peng Plasma is a privately held Chinese business It specializes in the manufacture

image text in transcribed
image text in transcribed
Part 1 of 11 Points: 0 of 1 Save Peng Plasma Pricing. Peng Plasma is a privately held Chinese business It specializes in the manufacture of plasma cutting torches. Over the past eight years it has held the Chinese renminbi price of the PT350 cutting torch fixed at Rmb 18,000 per unit. Over that same period it has worked to reduce costs per unit, but has struggled of late due to higher input costs Over that same period the renminbi has continued to be revalued against the US dollar by the Chinese government After completing the table - assuming the same price in renminbi for all years-answer the following questions a. What has been the impact of Peng's pricing strategy on the USS price? How would you expect their US dollar based customers to have reacted to this? b. What has been the impact on Pong's margins from this pricing strategy Complete the table below (Round al values as in year 2007) Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Margin Margin Average Rate Price Change USS Year (Rmb) (Rmb) (Rmb) (%) (Rmb/U85) (USS) Price (%) 2007 16,000 2000 18,000 111 761 2365 31 2008 15.400 18,000 8.95 Price Search Price (US$) 2,365 31 Change USS Price (%) (Click on the icon to import the table into a spreadsheet) Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Margin Price Year (Rmb) (Rmb) (Rmb) 2007 16,000 2,000 18,000 2008 15,400 2009 14,800 2010 14,700 2011 14,200 2012 14.400 2013 14,600 2014 14,800 Cumulativo Margin Average Rate (%) (Rmb/US5) 11.1% 7.61 6.95 6.83 6.77 6.46 631 6.15 6.16 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions