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. Richard's U.S. sales are somewhat affected by the value of the New Zealand dollar (NZ$), because it faces competition from New Zealand exporters. It forecasts the U.S. sales based on the following three exchange rate scenarios: Exchange Rate of NZ$ Revenue from U.S. Business (in millions) NZS = $.48 $ 100 NZS = .50 105 NZS = .54 110 . Richard Co. revenues in New Zealand dollars are expected to be NZ$ 600 million. . Its anticipated cost of goods sold is estimated at $ 60 million from the purchase of U.S. materials and NZ$ 100 million from the purchase of New Zealand materials. . Fixed operating expenses are estimated at $ 30 million. . Variable operating expenses are estimated at 20 percent of total sales (after including New Zealand sales, translated to a dollar amount). . Interest expense is estimated at $20 million on existing U.S. loans, and the company has no existing New Zealand loans.Forecasted Income Statement for Richard Company NZ$= 0.48 NZ$= 0.50 NZ$= 0.54 Revenue Sales US $ 100 $105 $110 New Zealand NZ$=600 $288 $405 $434 Total Cost of Goods Sold US $60 $60 $60 New Zealand NZ$=100 $48 $50 $54 Total $108 $110 $114 Gross Profit $208 $295 $320 Operating Expenses US- Fixed Costs $30 $30 $30 US- Variable Costs $78 $81 $87 Total $108 $111 $117 Earnings before Tax and $172 $184 $203 Interest Interest Expense US $20 $20 $20 New Zealand 0 0 0 Total $20 $20 $20 -........" Earnings before taxes $152 $164 $183 Less(-) Income Tax Expense Total $152 $164 $183