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  • How To Calculate The Exchange Rate Effect: Swipe

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    mohamed.mahrous1397
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    The document explains how to calculate the exchange rate effect on revenue. The exchange rate effect is calculated by taking the change in the exchange rate and multiplying it by the actual price in foreign currency and actual volume. This is demonstrated using an example where the exchange rate effect of a product with a revenue of €27,000 is €3,000, calculated as the change in exchange rate of €0.10 multiplied by the actual US dollar price of $60 and volume of 500 units.

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    The document explains how to calculate the exchange rate effect on revenue. The exchange rate effect is calculated by taking the change in the exchange rate and multiplying it by the actual price in foreign currency and actual volume. This is demonstrated using an example where the exchange rate effect of a product with a revenue of €27,000 is €3,000, calculated as the change in exchange rate of €0.10 multiplied by the actual US dollar price of $60 and volume of 500 units.

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    © All Rights Reserved
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    8 views4 pages

    How To Calculate The Exchange Rate Effect: Swipe

    Uploaded by

    mohamed.mahrous1397
    The document explains how to calculate the exchange rate effect on revenue. The exchange rate effect is calculated by taking the change in the exchange rate and multiplying it by the actual price in foreign currency and actual volume. This is demonstrated using an example where the exchange rate effect of a product with a revenue of €27,000 is €3,000, calculated as the change in exchange rate of €0.10 multiplied by the actual US dollar price of $60 and volume of 500 units.

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    © All Rights Reserved
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    of 4

    H ow to

    calcul at e t h e
    Exc h a n g e
    Rat e E f fe c t

    SWIPE
    DEFINITION

    Price effect =change of price in


    local currency effect +
    exchange rate effect

    Exchange rate effect =


    Change of Exchange rate *
    Actual Price in foreign
    currency *
    Actual Volume

    Nicolas Boucher 1/11


    EXCHANGE RATE
    EFFECT
    Single Product Actuals Budget Delta
    Revenue in EUR 27,000€ 20,000€ 7,000€
    Volume 500 500 0
    Price in EUR 54€ 40€ 14€
    Price in USD $60 $50 $10
    FX Rate USD/EUR 0.90€ 0.80€ 0.10€

    Exchange rate effect =


    Change of Exchange rate (0.90€ - 0.80€) *
    Actual Price in foreign currency: $60
    * Actual volume of the product: 500

    = 0.10€ * 60 * 500 = 3.000€

    Nicolas Boucher 2/11


    PRICE EFFECT IN LOCAL
    CURRENCY
    Single Product Actuals Budget Delta
    Revenue in EUR 27,000€ 20,000€ 7,000€
    Volume 500 500 0
    Price in EUR 54€ 40€ 14€
    Price in USD $60 $50 $10
    FX Rate USD/EUR 0.90€ 0.80€ 0.10€

    Price effect in local currency =


    Budget exchange rate (0.80€) *
    Change of price in dollars ($60 - $50) *
    Actual volume of the product: 500
    = 0.80€ * 10 * 500 = 4.000€

    Nicolas Boucher 3/11

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