Question: Another alternative, assuming the Fx rate changes to 0 . 8 4 0 / $ , is to increase the local price ( pass through

Another alternative, assuming the Fx rate changes to 0.840/$, is to increase the local price (pass through) such that per-unit contribution remains $44. The marketing manager knows that there is some degree of price sensitivity in the market and raising prices will lead to a drop in volume. Based on an analysis of historical records, the marketing manager develops a best-case (low price sensitivity) and worst-case (high price sensitivity) demand schedule:Low price sensitivity: Demand (units)=100,000 units -(1,364\times (new price - starting price))High price sensitivity: Demand (units)=100,000 units -(3,636\times (new price - starting price))If the marketing manager decides to maintain the $44 per-unit contribution, what will be the new price in euros? How many units will be sold, and what is the resulting total contribution for the (a) low and (b) high price sensitivity scenarios?Pass-Through ScenarioSales VolumeTotal Contribution(a) Low Price Sensitivity units$(b) High Price Sensitivity units$

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