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 18,900 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 U.S. dollar by the Chinese government. After completing the table E-assuming the same price in renminbi for all yearsanswer the following questions. a. What has been the impact of Peng's pricing strategy on the US$ price? How would you expect their U.S. dollar-based customers to have reacted to this? b. What has been the impact on Peng's margins from this pricing strategy? Complete the table below: (Round all values as in year 2007.) Margin Price Change US$ Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Margin Price Year (Rmb) (Rmb) (Rmb) 2007 16,000 2,900 18,900 Average Rate (Rmb/US$) (%) (US$) Price (%) 15.3 7.61 2,483.57 2008 15,400 18,900 6.95 Margin (%) 15.3% Price Change US$ (US$) Price (%) 2,483.57 Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Margin Price Year (Rmb) (Rmb) (Rmb) 2007 16,000 2,900 18,900 2008 15,400 2009 14,800 2010 14,700 2011 14,200 2012 14,400 2013 14,600 2014 14,800 Cumulative Average Rate (Rmb/US$) 7.61 6.95 6.83 6.77 6.46 6.31 6.15 6.16