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 18,300 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 USS price? How would you expect their US 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? (Click on the icon to import the table into a spreadsheet.) Margin (%) Price Change USS (USS) Price (%) 2,405 12.6% Fixed Rmb Pricing of the PT350 Plasma Cutting Torch Cost Margin Price Year (Rmb) (Rmb) (Rmb) 2007 16.000 2,300 18,300 2008 15,400 2009 14,800 2010 14.700 2011 14200 2012 14.400 2013 14.600 2014 14.800 Cumulative Average Rate (Rmb/USS) 7.61 6.95 6.83 6.77 6.46 6.31 6.15 6.16 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 Margin Price Margin Average Rate Price Change USS Year (Rmb) (Rmb) (Rmb) (%) (Rmb/USS) (USS) Price (%) 2007 16,000 2,300 18,300 12.6 7.61 2,405 2008 15,400 18,300 6.95 2009 14,800 18,300 6.83 2010 14,700 18,300 6.77 2011 14,200 18,300 6.46 2012 14,400 18,300 6.31 2013 14.600 18,300 6.15 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 reacte b. What has been the impact on Peng's margins from this pricing strategy from 2007 to 2011? 2011 14,200 18,300 6.46 2012 14,400 18,300 6.31 2013 14,600 18,300 6.15 2014 14.800 18,300 6.16 Cumulative a. What has been the impact of Peng's pricing strategy on the USS price? (Select the best choice below.) OA. By maintaining a constant price in Rmb, as the average exchange rate (Rmb/US5) decreased the price in US$ increased. O B. By maintaining a constant price in Rmb as the average exchange rate (Rmb/US5) increased the price in USS decreased O C. By maintaining a constant price in Rmb as the average exchange rate (Rmb/US5) decreased the price in USS decreased. OD. By maintaining a constant price in Rmb, as the average exchange rate (Rmb/USS) increased the price in US$ increased dollar-based customers to have reacted to this? (Select the best choice below.) O A. As the price in USS remains constant, the US dollar-based customers would be tempted to look for cheaper alternatives. O B. As the price in USS decreased, the U.S. dollar-based customers would be tempted to look for cheaper alternatives. OC. As the price in US$ increased the U.S. dollar-based customers would be tempted to look for cheaper alternatives. OD. There is not enough information to answer this question b. What has been the impact on Peng's margins from this pricing strategy from 2007 to 2011? (Select the best choice below) O A. Peng's margins in Rmb increased steadily as the average exchange rate (Rmb/US5) decreased O B. Peng's margins in Rmb decreased steadily as the average exchange rate (Rmb/USS) increased O c. Peng's margins in Rmb decreased steadily as the average exchange rate (Rmb/USS) decreased OD. Peng's margins in Rmb increased steadily as the average exchange rate (Rmb/USS) increased Enter anhorin