Bulldog Ltd, a UK company, buys goods from Redland which cost 80,000 Reds. (the local currency). The goods are re-sold in the UK for \( 25,600 \) At the time of the import purchase the exchange rate for Reds against sterling is \( R / 3.5650-3.5800 \).

Required; What is the expected profit on the re-sale? What would the actual profit be if the spot rate at the time when the currency is received has moved to \( R / 3.0800-3.0950 \) and \( 4.0650-4.0800 \)