A small Canadian company has contracted to purchase 100,000 toys for 3.50 each from a British company. The Canadians have agreed to pay in Sterling (). The Canadians have also agreed to sell the toys to a U.S. company for U.S.$5.50 per toy. The Canadian company has agreed to accept U.S. dollars but plans to convert these revenues to Canadian dollars. The Canadian company estimates its marginal costs (warehousing, travel, and so on) as C$.75 per toy. Exchange rates at the time of signing the agreements are as follows: British .66 = Canadian $1 = U.S. $.80 Question 35 2 pts 35. What impact would a devaluation of the U.S. Dollar relative to the Canadian dollar have on the Canadian company's profits? b. It will lower profit a. It will raise profit Question 36 2 pts 36. What impact would a devaluation of the British relative to the Canadian dollar have on the Canadian company's profits? O a. It will raise profit O b. It will lower profit Question 37 2 pts 37. If exchange rates changed to the following: (.57 - Canadian $1 - U.S. $.90 ), what impact would this have on the Canadian company's profits? a. Profit=Canadian $109,721 c. Profit= Canadian $-77,924 O b. Profit = Canadian $17,296 O d. Profit - Canadian $ 124,794