4. What happens if sales volumes are lower or higher than expected as outlined at the end of the case? What hedging decision would you advocate? For sales volume higher and lower than expected, i.e, sales volume = 10,000 and 30,000 the profit impact is as below. Worst case scenario: volume got hit (volume=10,000) and currency in expense hits as well. When volume=10,000, 100% forward contract will hit you most seriously. Total Costs USD Exchange Rate (USD/EUR) Profit impact (USD)