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Recalculate Molto Deliziosos income statement under 3 scenarios, using post-Brexit exchange rate 1.00= 1.16, assuming no change in fixed costs and change in variable costs
- Recalculate Molto Deliziosos income statement under 3 scenarios, using post-Brexit exchange rate 1.00= 1.16, assuming no change in fixed costs and change in variable costs only in terms of volume or quantity sold. Scenario #1: Calculate profits in both and Scenario #2: Assume UK subsidiary increases its price to UK buyers by 235 per unit. Assume consumer price elasticity is 1.1. Calculate profits in both and . Scenario #3: Assume consumer price elasticity is .8. Again, calculate profits in both and .
Which of the 3 scenarios should Montague choose?
What is the perspective of the Italian headquarters?
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