Business
Business, 27.11.2019 21:31, jazzy4211

Manitowoc crane (u. s.) exports heavy crane equipment to several chinese dock facilities. salesare currently 10,000 units per year at the yuan equivalent of $24,000 each. the chinese yuan(renminbi) has been trading at yuan8.20/$, but a hong kong advisory service predicts therenminbi will drop in value next week to yuan9.00/$, after which it will remain unchanged for atleast a decade. accepting this forecast as given, manitowoc crane faces a pricing decision in theface of the impending devaluation. it may either (1) maintain the same yuan price and in effect sellfor fewer dollars, in which case chinese volume will not change; or (2) maintain the same dollarprice, raise the yuan price in china to offset the devaluation, and experience a 10% drop in unitvolume. direct costs are 75% of the u. s. sales price. additionally, financial management believes that if it maintains the same yuan sales price, volumewill increase at 12% per annum for eight years. dollar costs will not change. at the end of tenyears, manitowoc's patent expires and it will no longer export to china. after the yuan is devaluedto yuan9.20/$, no further devaluations are expected. if manitowoc crane raises the yuan price soas to maintain its dollar price, volume will increase at only 1% per annum for eight years, startingfrom the lower initial base of 9,000 units. again dollar costs will not change and at the end of eightyears manitowoc crane will stop exporting to china. manitowoc's weighted average cost of capitalis 10%. given these considerations, what should be manitowoc's pricing policy? a. what would be the short-run (one year) impact of each pricing strategy? b. which do you recommend? c. what would be the long-run impact of each pricing strategy? d. which do you recommend? can you me with this? need more cauculation details

answer
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 14:30, benjaminmccutch
Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?
Answers: 1
image
Business, 22.06.2019 20:00, BigI80531
Later movers do not face: entrenched competitors. reduced uncertainty over technologies. high growth markets. lower market uncertainty.
Answers: 3
image
Business, 22.06.2019 22:20, arisworlld
With q7 assume the sweet company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. and for q 10,11,13,and 14,assume that the company use department predetermined overhead rates with machine-hours as the allocation bade in both departements.7. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answers to nearest whole dollar.)total price for the job for job p -job q selling price per unit for job p q . how much manufacturing overhead was applied from the molding department to job p and how much was applied to job q? (do not round intermediate calculations.) job p job q manufacturing overhead applied for job p for job q . how much manufacturing overhead was applied from the fabrication department to job p and how much was applied to job q? (do not round intermediate calculations.)job p job q manufacturing overhead applied for job p for job q . if job q included 30 units, what was its unit product cost? (do not round intermediate calculations. round your final answer to nearest whole dollar.)14. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answer to nearest whole dollar.)total price for the job p for job q selling price per unit for job p for job q
Answers: 1
image
Business, 23.06.2019 00:30, josephfoxworth
Emerson has an associate degree. based on the bar chart below, how will his employment opportunities change from 2008 to 2018
Answers: 2
Do you know the correct answer?
Manitowoc crane (u. s.) exports heavy crane equipment to several chinese dock facilities. salesare c...

Questions in other subjects:

Konu
Biology, 28.07.2019 20:40
Konu
Mathematics, 28.07.2019 20:40