Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a firm that sells its product in both the U . S . and the U . K . U . S . demand

Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is for 12,000 units, and the U.S.
production capacity is 17,000 units. Demand in the U.K. is for 8,000 units, and the U.K. production capacity is 12,000
units. Production cost in the U.S. is $3.4, and production cost in the U.K. is 7. The current exchange rate is $1.36=1.
The shipping cost is $1.6 per unit for any units shipped between the two countries. Sales prices equate to $110 in each
country.
a) How many should be made in each country?
U.S.= units.
U.K.= units.
b) How much is the profit for each country?
U.S. Profit =$,(round your response to the nearest dollar).
U.K. Profit = $ (round your response to the nearest dollar).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Fundamentals Of Fashion Management

Authors: Susan Dillon

2nd Edition

1474271219, 978-1474271219

More Books

Students also viewed these General Management questions

Question

b. What groups were most represented? Why do you think this is so?

Answered: 1 week ago