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Rex manufacturing

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Rex manufacturing produces a line of equipment with a European servo value that cost $100 when the Euro was 83 cents. Now that the Euro is $1.59 cents the component is a problem. What is the current cost of the valve? What are Rex's options?

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Solution Summary

The solution provides an explanation determining the current cost of the value and discussing Rex's options.

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Old Cost = $100

Old exchange rate = 83 cents

New Exchange Rate = $1.59

New Cost = ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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