Save Score: 0 of 1 pt Sof 5 (1 completely HW Score: 20%, 1 of 5 pts Problem 12-10 (algorithmic) Question Help Hurte-Paroxysm Products, Inc. (B). Hurte Paroxysm Products, Inc. Pof the United States, esports computer printers to Brazil, whose currency. The real has been trading a R$3.50USS. Exports to Brazil are currently 50,000 printers per year the real equivalent of 5.250 each. A strong rumorests that there will be devalued to 54.2015 within two weeks by the Brazilian government. Should the devaluation take place, the real is expected to remain unchanged for another decade. Accepting this forecast as given, HP faces a prong decision that must be made before any actual devaluation HP may either (1) martain the same real price and in effect sel for power dollars, in which case Brazilian volume will not change or maintain the same dolor prio, raise the real price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the United States are 60% of the U.S. ales price. HP also believes that it maintains the same price in Brazilian Real as a permanent policy. volume will increase at 11% per annum through year siosts will not change. Al the end of six years. HPs patent expires and it will no longer export to Urazil, or the real is devalued to R$4.20US$. no further devaluation is expected HP raise the price in real so as to maintain its dollar pro volume will increase at only 3% per annum though year B a ting from the lower in base of 40.000 units Againditar costs will not change and at the end of six years. HP will stop exporting to Brazil HP's weighted average cost of capitalis 10%. Given these considerations, what do you recommend for HPs pricing policy? Justly your recommendation CASE 1 IP mains the same real price and intet ses for fewer dollars, the annual sales price per unit is equal to (5230x R$350/5) R$4.20/$152. The direct cost per unit is 60% of the sales or $230x0.60 - $130. Calculate the gross profits for years 1 through in the following table (Round to the nearest dollar) Year 1 50 000 1925 1924 1925 1924 1925 192 Sales volume units) Sales price per unit Total sales revenue Direct cost per un Tu direct costs Gross profits 305 135 $ 138 5 Enter any number in the edit fields and then click Check Answer Clear All Check Answer molliework. Urlapter 12 montiework Save Score: 0 of 1 pt 5 of 5 (4 complete) HW Score: 20%, 1 of 5 pt Problem 12-10 (algorithmic) Question Help Hurte-Paroxysm Products, Inc. (B). Hurte-Paroxysm Products, Inc. (HP) of the United States, exports computer printers to Brazil, whose currency, the real (R$) has been trading at R$3.50 USS Exports to Brazil are currently 50,000 printers per year at the real equivalent of $230 each. A strong rumor exists that the real will be devalued to R$4.2015 within two weeks by the Brazilian government. Should the devaluation take place, the real is expected to remain unchanged for another decade. Accepting this forecast as given, HP faces a pricing decision that must be made before any actual devaluation: HP may either (1) maintain the same real price and in effect sell for fewer dollars, in which case Brazilian volume will not change, or (2) maintain the same dollar price, raise the real price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the United States are 60% of the U.S. sales price. HP also believes that if maintains the same price in Brazilian real as a permanent policy, volume will increase at 11% per annum through year sin, costs will not change. At the end of six years, HP's patent expires and it will no longer export to Brazil. After the real is devalued to R$4,20/US$, no further devaluation is expected. If HP raises the price in real so as to maintain its dollar price, volume will increase at only 3% per annum though year six, starting from the lower initial base of 40.000 units. Again, dollar costs will not change, and at the end of six years, HP wil stop exporting to Brazil. HP's weighted average cost of capital is 10%. Given these considerations, what do you recommend for HP's pricing policy? Justify your recommendation CASE 1 HP maintains the same real price and in effect sells for fower dollars, the annual sales price per unit is equal to ($230 X R$3.50/8). R$4.20/$ $192. The direct cost per unit is 60% of the sales, or $230 x0,60 $138. Calculate the gross profits for years through in the following table (Round to the nearest dolar) Year 2 Year 3 Case 1 Sales volume (units) Sales price per unit Total sales revenue Direct cost per unit Year 1 50,000 1925 $ 1926 1925 192 $ $ 138 $ 138 $ 138 Enter any number in the edit fields and then click Check Answer 4 4 remaining parts Check Answer Save Score: 0 of 1 pt Sof 5 (1 completely HW Score: 20%, 1 of 5 pts Problem 12-10 (algorithmic) Question Help Hurte-Paroxysm Products, Inc. (B). Hurte Paroxysm Products, Inc. Pof the United States, esports computer printers to Brazil, whose currency. The real has been trading a R$3.50USS. Exports to Brazil are currently 50,000 printers per year the real equivalent of 5.250 each. A strong rumorests that there will be devalued to 54.2015 within two weeks by the Brazilian government. Should the devaluation take place, the real is expected to remain unchanged for another decade. Accepting this forecast as given, HP faces a prong decision that must be made before any actual devaluation HP may either (1) martain the same real price and in effect sel for power dollars, in which case Brazilian volume will not change or maintain the same dolor prio, raise the real price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the United States are 60% of the U.S. ales price. HP also believes that it maintains the same price in Brazilian Real as a permanent policy. volume will increase at 11% per annum through year siosts will not change. Al the end of six years. HPs patent expires and it will no longer export to Urazil, or the real is devalued to R$4.20US$. no further devaluation is expected HP raise the price in real so as to maintain its dollar pro volume will increase at only 3% per annum though year B a ting from the lower in base of 40.000 units Againditar costs will not change and at the end of six years. HP will stop exporting to Brazil HP's weighted average cost of capitalis 10%. Given these considerations, what do you recommend for HPs pricing policy? Justly your recommendation CASE 1 IP mains the same real price and intet ses for fewer dollars, the annual sales price per unit is equal to (5230x R$350/5) R$4.20/$152. The direct cost per unit is 60% of the sales or $230x0.60 - $130. Calculate the gross profits for years 1 through in the following table (Round to the nearest dollar) Year 1 50 000 1925 1924 1925 1924 1925 192 Sales volume units) Sales price per unit Total sales revenue Direct cost per un Tu direct costs Gross profits 305 135 $ 138 5 Enter any number in the edit fields and then click Check Answer Clear All Check Answer molliework. Urlapter 12 montiework Save Score: 0 of 1 pt 5 of 5 (4 complete) HW Score: 20%, 1 of 5 pt Problem 12-10 (algorithmic) Question Help Hurte-Paroxysm Products, Inc. (B). Hurte-Paroxysm Products, Inc. (HP) of the United States, exports computer printers to Brazil, whose currency, the real (R$) has been trading at R$3.50 USS Exports to Brazil are currently 50,000 printers per year at the real equivalent of $230 each. A strong rumor exists that the real will be devalued to R$4.2015 within two weeks by the Brazilian government. Should the devaluation take place, the real is expected to remain unchanged for another decade. Accepting this forecast as given, HP faces a pricing decision that must be made before any actual devaluation: HP may either (1) maintain the same real price and in effect sell for fewer dollars, in which case Brazilian volume will not change, or (2) maintain the same dollar price, raise the real price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the United States are 60% of the U.S. sales price. HP also believes that if maintains the same price in Brazilian real as a permanent policy, volume will increase at 11% per annum through year sin, costs will not change. At the end of six years, HP's patent expires and it will no longer export to Brazil. After the real is devalued to R$4,20/US$, no further devaluation is expected. If HP raises the price in real so as to maintain its dollar price, volume will increase at only 3% per annum though year six, starting from the lower initial base of 40.000 units. Again, dollar costs will not change, and at the end of six years, HP wil stop exporting to Brazil. HP's weighted average cost of capital is 10%. Given these considerations, what do you recommend for HP's pricing policy? Justify your recommendation CASE 1 HP maintains the same real price and in effect sells for fower dollars, the annual sales price per unit is equal to ($230 X R$3.50/8). R$4.20/$ $192. The direct cost per unit is 60% of the sales, or $230 x0,60 $138. Calculate the gross profits for years through in the following table (Round to the nearest dolar) Year 2 Year 3 Case 1 Sales volume (units) Sales price per unit Total sales revenue Direct cost per unit Year 1 50,000 1925 $ 1926 1925 192 $ $ 138 $ 138 $ 138 Enter any number in the edit fields and then click Check Answer 4 4 remaining parts Check