Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the

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Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the spot and forward exchange rates are $1.20/. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Dell computers in Europe is = 1.5.

Reconsider a depreciation of Euro (relative to US dollar) from $1.20/ to $1.08/. Now assume passthrough = 0.8. What is Dell's total profit in $?

Posted Date: May 18, 2024 07:01 PM

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Dell is selling 30,000 units in Europe at an average price of 1,500 per unit. Both the

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