Jaguar Has Full Manufacturing Costs of Their S-Type Sedan of £22,803

question 47

Multiple Choice

Jaguar has full manufacturing costs of their S-type sedan of £22,803. They sell the S-type in the UK with a 20% margin for a price of £27,363. Today these cars are available in the U.S. for $55,000 which is the UK price multiplied by the current exchange rate of $2.01/£. Jaguar has committed to keeping the U.S. price at $55,000 for the next six months. If the UK pound appreciates against the USD to an exchange rate of $2.15/£, and Jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?

• A) £22,803
• B) £25,581
• C) £27,363
• D) £55,000

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Definitions:

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment, such as touch, temperature, or light.

Adaptation

Adaptation is the process by which organisms adjust to changes in their environment to improve survival and reproduction.

Gag Reflex

An involuntary reflex contraction of the back of the throat, evoked by touching the roof of the mouth, back of the tongue, area around the tonsils, or the back of the throat.

Difficulty Swallowing

A condition, medically known as dysphagia, characterized by discomfort or challenges in swallowing food or liquids.