Below are the forcasted gross margin for company A's foreign subsidiary, you are forcasting 25% devaluation of the local currency, calculate the subsidiary's local exposure and it's potential loss in the event of the 25% devaluation of the local currency company

company A		L.C.		Rate		US$
Sales-L.C.		625		0.4		250
Sales-US$		125		0.4		50
Sales-Total		750		0.4		300
COGS-L.C.		425		0.4		170
COGS-US$		250		0.4		100
COGS-Total		675		0.4		270
Gross Margin		75		0.4		30