Your firm, which currently sells its product only in South Texas, is considering starting to export your product across the border into Mexico.Currently, your firm's revenues are $1,200,000 and your firm's costs are $1,020,000.You estimate that if you start exporting to Mexico, your revenues willincreaseby $150,000 and your costs willincrease by $200,000.

A.What are your profits if you do not export your product to Mexico?

B.What are your profits if you do export to Mexico?

C.What are the incremental profits associated with exporting to Mexico?

D. Should your firm export to Mexico?EXPLAIN WHY OR WHY NOT.

E.Suppose that a previous manager had already decided to go ahead with the project (i.e., already decided to start exporting to Mexico).After spending $100,000 to start (but not finish) the exporting project, he was fired and you took the project over.You have to decide whether to continue with his project or not.If you continue, your additional revenue from exporting to Mexico will be $150,000 and your costs will be the $100,000 that the previous manager has already spent and $100,000 additional dollars that you will need to spend to complete the project.If you cancel the project, your firm will not start exporting, so additional revenue will be zero, but your only costs are the $100,000 the previous manager has already spent?Should you continue?EXPLAIN WHY OR WHY NOT.