A company sells Sinks in the USA (all sales are in USD). They currently have sales of $115,000. All of company costs are variable. All of the company costs originate in EUR - as the company buys all inputs from France.

Costs (in USD) are equal to $100,000 , when the exchange rate =1.25 USD/EUR

a.) At what exchange rate would the company break even (USD /EUR)?

b.) Determine company profit (in USD) if the USD / EUR is at 1.25?

c.) Determine company profit (in USD) if the USD / EUR is at 1.50