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Suppose that the dollar strengthens versus the British Pound. Complete the table below using a new rate of exchange whereby the $USD appreciates versus the
Suppose that the dollar strengthens versus the British Pound. Complete the table below using a new rate of exchange whereby the $USD appreciates versus the British Pound
Scenario Mobile Select
Gross Sales in Pounds
Less: Commission Paid to Pogue
Equals: Net Sales
Current Exchange Rate $
Sales in $US Dollars
Less: Production Costs in $US Dollars
Equals: Earnings Before Tax in $US Dollars
Pogues commission as a decimal multiplied by Pogues Gross Sales
The conversion of to $USD at the exchange rate in the table
Gross Sales in $USD multiplied by the stated production cost,
With the dollar strength versus the British Pound, what happens if Pogues sales are million? Complete the table below using a new rate of exchange from question and Gross
Sales are
Scenario Mobile Select
Gross Sales in Pounds
Less: Commission Paid to Pogue
Equals: Net Sales
Current Exchange Rate $
Sales in $US Dollars
Less: Production Costs in $US Dollars
Equals: Earnings Before Tax in $US Dollars
Pogues commission as a decimal multiplied by Pogues Gross Sales
The conversion of to $USD at the exchange rate in the table
Gross Sales in $USD multiplied by the stated production cost,
Compare the results from Scenarios to What happens to Mobile Select if the dollar strengthens against the pound? What is the effect on Mobile Select of a stronger dollar and a lower level of sales in the UK provided by Pogue?
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