Safari File Edit View History Bookmarks Window Help 97% 47 Sat 1:26 PM Q . . . mathxl.com C (4) Blackboard | New Jersey City Univ. Bb NJCU Blackboard Ultra Content Do Homework - HW 11 (Ch 12) Course Hero FINC3641628 International Finance Spring 2021 Timeeka Milton & | 05/01/21 1:26 PM Homework: HW 11 (Ch 12) Save Score: 4 of 6 pts 3 of 6 (3 complete) HW Score: 60%, 12 of 20 pts x Problem 12-3 (algorithmic) Question Help Manitowoc Crane (A). Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 20,000 units per year at the yuan equivalent of $25,000 each. The Chinese yuan renminbi) has been trading at Yuan7.90/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan8.60/$, after which it will remain unchanged for at least a decade. Accepting this forecast as given, Manitowoc Crane faces a pricing decision in the face of the impending devaluation. It may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case Chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, and experience a 10% drop in unit volume. Direct costs are 75% of the U.S. sales price. a. What would be the short-run (one-year) impact of each pricing strategy? b. Which do you recommend? a. If Manitowoc Crane maintains the same yuan price and same unit volume, what will be the firm's gross profits? $(Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. ? 2 parts remaining Clear All Check Answer MAY 2 1 ... O W