Answer:
Murray Exports (U.S.)
A. The short-run impact of each pricing strategy is as follows:
                                             Alternative 1                    Alternative 2
                               Reduce Price to $21,867    Maintain Price at $24,000
Gross profit                         $38,670,000               $54,000,000
Reduction in Gross Profit   $21,330,000                 $6,000,000
B.  (2) maintain the same dollar price of $24,000, raise the yuan price in China to Yuan 216,000 per unit to offset the devaluation, and experience a 10% drop in sales unit volume.  
  
Explanation:
a) Data and Calculations:
Current exchange rate = Yuan 8.20/US$
Current exports of heavy crane equipment per year to China = 10,000
US unit price of printer in dollars = $24,000
Chinese unit price of crane equipment in Yuan equivalent = Yuan 196,800 ($24,000 * Yuan 8.20)
Unit price of crane equipment in Chinese Yuan when the currency is devalued = Yuan 216,000 ($24,000 * Yuan 9.00)
The reduced dollar price with devaluation, when Yuan price is maintained = $21,867 (Yuan 196,800/9.00)
Before Devaluation of Chinese Yuan:
Sales volume            10,000
Sales revenue $240,000,000 (10,000 * $24,000)
Direct costs        180,000,000 (10,000 * $18,000) (75% of $24,000)
Gross profit       $60,000,000
                              Alternative 1                         Alternative 2
                        Reduce Price to $21,867    Maintain Price at $24,000
Sales volume                10,000 units             9,000 (10,000 * 90%) units
Sales revenue      $218,670,000             $216,000,000 ($24,000 * 9,000)
Direct costs            180,000,000               162,000,000 ($18,000 * 9,000)
Gross profit           $38,670,000               $54,000,000 ($6,000 * 9,000)
Direct costs = $180m ($18,000 * 10,000)  = $162m ($18,000 * 9,000)