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Suppose Dell is selling 50,000 units in Europe at an average price of 2,000 per unit. Its costs are $2,000 per unit. Now consider a
Suppose Dell is selling 50,000 units in Europe at an average price of 2,000 per unit. Its costs are $2,000 per unit. Now consider a 10% fall in the Euro from $1.20/ to $1.08/C Assume zero passthrough (i.e., Dell's sale prices in Euro remain the same at 2,000 per unit and sales volume remains to be 50,000 units). What is Dell's dollar profit exposure? $100 million O 100 million $20 million O 16.7 million
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