Question
Phillips NV produces CPAP machines and exports them to the United States. Last year the exchange rate was USD1.25/EUR and Phillips charged EUR120 per machine
Phillips NV produces CPAP machines and exports them to the United States. Last year the exchange rate was USD1.25/EUR and Phillips charged EUR120 per machine in Euroland and USD150 per machine in the United States. Currently, the spot exchange rate is USD1.45/EUR and Phillips is charging USD160 per machine. What is the degree of pass-through by Phillips NV on their CPAP machines?
a)92%
b) 33.3%
c) 4.1%
d) 41.7%
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Analysis Synthesis And Design Of Chemical Processes
Authors: Richard Turton, Joseph Shaeiwitz, Debangsu Bhattacharyya, Wallace Whiting
5th Edition
0134177401, 978-0134177403
