4. Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is 12,000 units, and the U.S. production capacity is 17,000 units. Demand in the U.K. is 8,000 units, and the U.K. production capacity is 13,000 units. Production cost in the U.S. is $3.4, and production cost in the U.K. is 6. The current exchange rate is $1.29 = 1. The shipping cost is $1.8 per unit for any units shipped between the two countries. Sales prices equate to $115 in each country.

Question content area bottom

a) How many should be made in each country?

U.S. =

enter your response here

units.

U.K. =

enter your response here

units.

b) How much is the profit for each country?

U.S. Profit =

$enter your response here

(round your response to the nearest

dollar).

U.K. Profit =

$enter your response here

(round your response to the nearest

dollar).