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The Synergy Company uses cost-plus pricing with a 50% mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6. In addition, the company incurs $200,000 in fixed costs annually. If demand falls to 80,000 units and the company wants to continue to earn a 50% return, what price should the company charge?
Currently a basket of goods costs 50 pounds in England and 100 euros in France. Next year at the same time, we expect 10% inflation in England and 65% inflation in France. Based on the above information and the PPP concepts, the current exchange ra..
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