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 18,700 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 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 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: (1. Round all values as in year 2007. 2. Round the percentage change in price to one decimal place.) Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Year (Rmb) Margin (Rmb) Price (Rmb) Margin (%) Average Rate Price (Rmb/US$) (US$) Change US$ Price (%) 2007 16,000 2,700 18,700 14.4 7.61 2,457 2008 15,400 3,300 18,700 17.6 6.95 2,691 Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Margin Year (Rmb) (Rmb) Price (Rmb) Margin (%) Average Rate Price Change US$ (Rmb/US$) (US$) Price (%) 2007 16,000 2,700 18,700 14.4 7.61 2,457 2008 15,400 6.95 2009 14,800 6.83 2010 14,700 6.77 2011 14,200 6.46 2012 14,400 6.31 2013 14,600 6.15 2014 14,800 6.16 Cumulative