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The company is worried about its exposure to the exchange rate, so it is exploring multiple strategies related to potential exchange rate movements. Create a

  1. The company is worried about its exposure to the exchange rate, so it is exploring multiple strategies related to potential exchange rate movements.

    • Create a data table and accompanying graph that show the firms profitability at exchange rates from

      FC 1.3/$ to FC 1.7/$ in .05 increments.

    • What is the breakeven exchange rate?

Company Income Statement
Sales: $1,875,000.00
Cost of goods sold: $1,550,000.00
Company Operating Income: $325,000.00
Additional Fixed Cost: $150,000.00
Operating Income: $175,000.00
Taxes: $43,750.00
Net Income: $131,250.00
Anticipated Net Income: $131,250.00
Anticipated Profit Margin: (Net Income/Net Sales)*100
7.00%
Breakeven Number: 3,461.54
3,462 units

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