Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 21 Mar 2018 My Price 6.00

shipping and handling

You own a small record label. You sell CDs through your Web site for $15, including shipping and handling. You get an offer from someone who owns a record store in Germany who wants to buy your CDs at $10 each and sell them for €30. He says his profit from each sale would be €12 and he will split it with you. Assuming the exchange rate between the dollar and the euro is $1 = €2:

1. How much profit would you get from the sale of each CD in the German store?

2. How much would that profit be in dollars?

3. Is this a good business opportunity for you? Why or why not?

4. If the FX rate between the dollar and the euro falls to $1 = €1, would this still be a good business idea for you? Why or why not?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 21 Mar 2018 03:03 AM My Price 6.00

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