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  • Numerical On Videocon

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    Abhijeet Witwekar
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    The Videocon company exports 12,000 washing machines per month to Bangladesh at $150 per unit. It imports components for $50 per unit and has variable costs of Rs. 4,200 per unit. It has fixed costs of Rs. 12,00,000. The current exchange rate is Rs. 48/$. If the rupee appreciates to Rs. 47/$, the company will need to increase its sales by a certain number of units to maintain current profits. The second company manufactures TV sets importing components from Singapore at SS 300 per unit and from the USA at $200 per unit. Both companies have identical domestic input costs of Rs. 8,000 per unit and a selling price of Rs. 20

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    Numerical on videocon

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    The Videocon company exports 12,000 washing machines per month to Bangladesh at $150 per unit. It imports components for $50 per unit and has variable costs of Rs. 4,200 per unit. It has fixed costs of Rs. 12,00,000. The current exchange rate is Rs. 48/$. If the rupee appreciates to Rs. 47/$, the company will need to increase its sales by a certain number of units to maintain current profits. The second company manufactures TV sets importing components from Singapore at SS 300 per unit and from the USA at $200 per unit. Both companies have identical domestic input costs of Rs. 8,000 per unit and a selling price of Rs. 20

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views1 page

    Numerical On Videocon

    Uploaded by

    Abhijeet Witwekar
    The Videocon company exports 12,000 washing machines per month to Bangladesh at $150 per unit. It imports components for $50 per unit and has variable costs of Rs. 4,200 per unit. It has fixed costs of Rs. 12,00,000. The current exchange rate is Rs. 48/$. If the rupee appreciates to Rs. 47/$, the company will need to increase its sales by a certain number of units to maintain current profits. The second company manufactures TV sets importing components from Singapore at SS 300 per unit and from the USA at $200 per unit. Both companies have identical domestic input costs of Rs. 8,000 per unit and a selling price of Rs. 20

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    per

    2) Videocon company has received anorder to export 12000 washing machines


    monthto Bangladesh @ selling price of'$ 150 per unit.
    unit and incur a variable
    Thecompany needs to inmport conmponents worth $ 50/per
    cost of Rs. 4200/ per unit. Fixed cost is Rs. 12.00,000/
    Spot rate is Rs. 48/ S.
    many units the company needs to
    If rupees appreciates to Rs.47/ $, find out by how
    increase its sales. so as to maintain current profits.

    you are a manufacturer of TV sets importing components from


    3)Assume that
    Singapore worth SS 300/ per unit. USA worth $ 200/ per unit.
    imports components from
    Your competitor
    identical cost of domestic inputs worth Rs.8000/per unit and selling
    Both have an
    price of Rs.20000/per unit. the rateof 10% p.a., whereas rupee is likely
    against S$ at
    Rupee is likely to depreciate
    to be at par against US $. US $ 1= Rs. 31.50
    Spot rate S S 1 = Rs. 20/
    % p.a., Singapore 3 o p.a.
    Inflation rates-> India 10 % p.a., USA 5 maintain his selling price next year. define
    to
    Assuming that your competitor is likely
    your strategy.

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