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Assume a company has the following results of operations under 3 exchange Rework the above data under the following restructuring scenario: Canadian sales are increased
Assume a company has the following results of operations under 3 exchange Rework the above data under the following restructuring scenario: Canadian sales are increased by 50% in C$ Operations are shifted from Canada to US and thus Canadian Cost of Goods Sold goes from C $200 to C$150 but US Cost of Goods Sold goes up by $35 Operating Expenses rise by $5 to pay for advertising to generate more Canadian Sales as discussed above Does this restructure help reduce the deviation in earnings subject to Canadian - US exchange rate? show work to substantiate your
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