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Suppose McDonald's Charges MYR 25 for a Burger in Kuala

Question 4

Multiple Choice

Suppose McDonald's charges MYR 25 for a burger in Kuala Lumpur. Its costs are MYR 18 per burger and these costs are not expected to change with the exchange rate. If the ringgit devalues from $0.107 to $0.096, what price will McDonald's have to charge for its burgers to maintain its U.S. dollar profit margin?


A) MYR 25.80
B) MYR 27.86
C) MYR 22.43
D) MYR 24

Correct Answer:

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