You are the director of U.S. operations for Nissan. In 2016, you developed plans for a new sports truck model, the Nissan Minimax to be sold at $30,000. This model can be made in both the U.S. and Japan. Gross margin (meaning margin after all direct costs) is approximately 50%. 1. What is the cost of the Minimax to Nissan if it is made in Japan vs. made in the U.S. in 2016 and 2021, assuming no inflation? 2. What actions would you recommend to the home office in Tokyo to address the current situation? SPOT RATES FOR CURRENCY EXERCISE (US terms) Country Canada C$ Mexico pesos Brazil reals Chilean pesos Japan yen Spot Rates (10-27-16) .7465 .0531 3165 .0015 .0095 Spot Rates (10-27-21) .8078 .0495 .1797 .00124 .0088 You are the director of U.S. operations for Nissan. In 2016, you developed plans for a new sports truck model, the Nissan Minimax to be sold at $30,000. This model can be made in both the U.S. and Japan. Gross margin (meaning margin after all direct costs) is approximately 50%. 1. What is the cost of the Minimax to Nissan if it is made in Japan vs. made in the U.S. in 2016 and 2021, assuming no inflation? 2. What actions would you recommend to the home office in Tokyo to address the current situation? SPOT RATES FOR CURRENCY EXERCISE (US terms) Country Canada C$ Mexico pesos Brazil reals Chilean pesos Japan yen Spot Rates (10-27-16) .7465 .0531 3165 .0015 .0095 Spot Rates (10-27-21) .8078 .0495 .1797 .00124 .0088