Question: Question 2 Assumptions Values Sales Volume Per day 13,2 US Dollar Price of a LED light Bulb 12 Spot Exchange Rate (CRC/$) 641.72 Expected Spot

Question 2

Assumptions

Values

Sales Volume Per day

13,2

US Dollar Price of a LED light Bulb

12

Spot Exchange Rate (CRC/$)

641.72

Expected Spot Rate (CRC/$)

887.95

Unit Volume Decrease if Price in CRC Increased

35%

This is a US electronic firm selling energy efficient LED light bulbs to Costa Rican households. Using the data above, calculate under Case-1 Same Costa Rican Colon (CRC) price and Case-2 Same U.S Dollar Price.

a)US dollar price of a light bulb.

b)Unit volume of daily sales of light bulbs.

c)US dollar daily sales revenue of all light bulbs revenues.

d)Based on the results in c, state which strategy is suitable to the US firm, why?

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