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Print 6. Operating exposure. Copy Cat, Inc. has signed a deal to make vintage Nissan 240-Z sports cars for the next three The company will

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Print 6. Operating exposure. Copy Cat, Inc. has signed a deal to make vintage Nissan 240-Z sports cars for the next three The company will build the cars in Japan and ship them to the United States for sale. The current indirect rate is 112.9066 per dollar. The anticipated inflation rate for parts and labor in Japan is 2.7% over the next three years, and the anticipated overall inflation rate for Japan is 3.7% over the next three years. The expected overall inflation rate in the United States is 4.5% over the next three years. (The stated rates are on an annual basis.) If Copy-Cat plans to sell 600 cars a year at an Initial price of $42,000 and the cost of production is 14,036,500, what is the annual profit in dollars for Copy-Cat? Assume it takes one year for production and all sales revenues and production costs occur at the end of the year. Is this profit rising or falling each year? Why? What is the expected sales revenue per car in dollars for Copy-Cat in year 17 (Round to the nearest cent.) What is the expected sales revenue per car in dollars for Copy-Cat in year 2? (Round to the nearest cent.) What is the expected sales revenue per car in dollars for Copy-Cat in year 3? (Round to the nearest cent.) What is the expected production cost per car in dollars for Copy-Cat in year 1? (Round to the nearest cent.) What is the expected production cost per car in dollars for Copy Cat in year 2? (Round to the nearest cent.) What is the expected production cost per car in dollars for Copy Cat in year 3? (Round to the nearest cent.) What is the expected profit in dollars for Copy-Cat in year 1? Enter a negative number for a loss. (Round to the nearest dollar.) What is the expected profit in dollars for Copy-Cat in year 2? Enter a negative number for a loss. (Round to the nearest dollar.) What is the expected profit in dollars for Copy-Cat in year 3? Enter a negative number for a loss. (Round to the nearest dollar.) Is this profit (loss) rising or falling each year? Why? (Select the best response.) O O A. The profit (loss) is rising (falling) each year as the revenue is growing at a higher inflation rate than the production costs despite the weakening dollar against the yen. B. The profit (loss) is falling (rising) each year as the dollar is weakening against the yen despite different inflation rates in the two countries. C. The profit (loss) is rising (falling) each year as the dollar is strengthening against the yen despite different inflation rates in the two countries. D. The profit (loss) is falling (rising) each year as the revenue is growing at a higher inflation rate than the production costs despite the weakening dollar against the yen. O O

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