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Porsche plans on introducing a new four - door luxury automobile in 2 0 2 3 called the Panamera X . Although pricing has not

Porsche plans on introducing a new four-door luxury automobile in 2023 called the Panamera X. Although pricing has not been set, some automotive analysts believe the basic production model will be sold in Europe at a price of 120,000. At this price they believed the company stands to earn a 20% margin on each car.
a. If the spot rate in 2023 was $1.4400/, what would be its projected price in the United States?
b. If the price in the US market was set at $158,000, and the spot exchange rate averaged $1.4240/, what would be the margin on the Panamera X?
c. What would the price in the US market have to be in order to keep the profit margin at 20% despite the dollar appreciation.

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