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 18,200 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 EEBassuming 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 from 2007 to 2011? Data Table (Click on theicon to import the table into a spreadsheet.) Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Price Cost (Rmb) Margin (Rmb) Margin Average Rate Price Change US$ (Rmb/US$) (US$) Price (%) Year 2007 2008 2009 2010 2011 2012 2013 2014 Cumulative (Rmb) 2,392 16,000 15,400 14,800 14,700 14,200 14,400 14,600 14,800 2,200 18,200 12.1% 7.61 6.95 6.83 6.77 6.46 6.31 6.15 6.16 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 18,200 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 EEBassuming 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 from 2007 to 2011? Data Table (Click on theicon to import the table into a spreadsheet.) Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Price Cost (Rmb) Margin (Rmb) Margin Average Rate Price Change US$ (Rmb/US$) (US$) Price (%) Year 2007 2008 2009 2010 2011 2012 2013 2014 Cumulative (Rmb) 2,392 16,000 15,400 14,800 14,700 14,200 14,400 14,600 14,800 2,200 18,200 12.1% 7.61 6.95 6.83 6.77 6.46 6.31 6.15 6.16