Suppose McDonald's charges Ptas.25 for a burger in Madrid.Its costs are Ptas.18 per burger and these costs are not expected to change with the exchange rate.If the peseta devalues from $0.107 to $0.096,what price will McDonald's have to charge for its burgers to maintain its dollar profit margin?
A) Ptas.25.80
B) Ptas.27.86
C) Ptas.22.43
D) Ptas.24
Correct Answer:
Verified
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