Example: Sunbeam Inc. considers selling its product to Mexico. Two alternative ways of selling the product overseas is to export or to construct production facilities in Mexico and sell the product locally. Sunbeam Inc. plans to set the export price at $180 per product if it decides to export and the local sales price at 630 pesos if it chooses to manufacture and sell in Mexico. The unit production cost is $70 if the product is manufactured in the U.S. and 245 pesos if it is manufactured in Mexico. The current exchange rate is Peso 3.5/S. At this current exchange rate, Sunbeam forecasts the export volume of 1,200 units. Sunbeam also forecasts that if the peso value revalues to peso 3.0/S, the export volume will increase to 1,500 units, and if the peso devalues to peso 4.0/S, the export volume will decrease to 900 units. If Sunbeam chooses the second alternative of constructing production facilities in Mexico, the local sales volume will remain to be 1,200 units. Calculate the profit margin (= sales revenue-production cost) for the three cases (i.e., at the current exchange rate, the case of revaluation and the case of devaluation) under each of the two alternatives (i.e. export and foreign direct investment), respectively. You must fill all the entries in dollar terms. (1) Export At current exchange rate After de- valuation valuation Sales Rev. Productiorn Profit Margin (2) Foreign direct investment At current exchange rate After re- e- valuation valuation Sales Rev. Productiorn Profit Margin