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Modine (Racine-based Wi Firm) Sells 1-feat Sinks in the USA (all sales are in USO) They currenily have sales/unit of $125,000 All of Modine's costs
Modine (Racine-based Wi Firm) Sells 1-feat Sinks in the USA (all sales are in USO) They currenily have sales/unit of $125,000 All of Modine's costs are variable All of Modine costs originate in Mexico - they buy all inputs from Mexico. The 37etter code for the United States dollar is USD and the 3-letter code for the Mexican Peso is MXN Current Unit Costs (in USO) are equal to $100,000, at the current exchange rate of 17.50 (MXN/USD) Thus, Modine carns \$,20,000 per heat sink system ($,125,000$105,000). Modine's CFO took fin 331 from Professor Beyer and is concerned about unit profitabitity if the exchange-rate moves. However. the CFO is unsture of whether the Peso strengthening or weakening is of concern. let's help them out! A) Determine Modine's unit profit (in USD) if the exhange rate MXN/USD goes to 19? B) Determine Modine's unit profit (in USD) if the exchange rate MXN/USD is at 15 ? C) At what exchange rate would Modine break even per unit (express your answer in MXN/USD)? Label your answers carefully with A, B, C
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