# Case Analysis

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### Question Description

Respond the following questions:

11-18. In fall 2011, the euro/dollar exchange rate was €1 = \$1.35. By spring 2015, the dollar had strengthened to €1 = \$1.10. Assume that a European luxury goods marketer cut the price of an \$8,000 linen suit by 10 percent when launching its spring 2015 collection. How would revenues have been affected when dollar prices were converted to euros?

11-19. Louis Vuitton executives raised prices in the late 2000s, and sales continued to increase. What does this say about the demand curve of the typical Louis Vuitton customer?

11-20. Compare and contrast LVMH’s pricing strategy with that of Coach

minimum of 400 words

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agneta
School: Duke University

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Case Analysis
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CASE ANALYSIS

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11-18:

Revenue is the amount of income that an organization earns from a given transaction.
In 2011: 1 Euro = \$ 1.35
In 2015: 1 Euro = \$ 1.10
The 8,000 dollar suit, when applied with a discount of 10%, amounts to 7,200 dollars in pricing.
When this discounted price is converted to Euros in the 2015 rate, it amounts to 6, 545 Euros
(7200 divided by 1.10). The original price converted to euros would as well re...

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