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Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is for 13,000 units, and the U.S. production capacity is 16,000 units. Demand in the U.K. is for 10,000 units, and the U.K. production capacity is 12,000 units. Production cost in the U.S. is $3.2, and production cost in the U.K. is £7. The current exchange rate is $1.28 = £1. The shipping cost is $1.6 per unit for any units shipped between the two countries. Sales prices equate to $120 in each country. a) How many should be made in each country? U.S. = units. U.K. = units. b) How much is the profit for each country? U.S. Profit= $ U.K. Profit= $ (round your response to the nearest dollar). (round your response to the nearest dollar).

Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is for 13,000 units, and the U.S. production capacity is 16,000 units. Demand in the U.K. is for 10,000 units, and the U.K. production capacity is 12,000 units. Production cost in the U.S. is $3.2, and production cost in the U.K. is £7. The current exchange rate is $1.28 = £1. The shipping cost is $1.6 per unit for any units shipped between the two countries. Sales prices equate to $120 in each country. a) How many should be made in each country? U.S. = units. U.K. = units. b) How much is the profit for each country? U.S. Profit= $ U.K. Profit= $ (round your response to the nearest dollar). (round your response to the nearest dollar).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is for 13,000 units, and the U.S. production capacity is 16,000 units. Demand in the U.K. is for 10,000 units, and the U.K. production capacity is 12,000 units. Production cost in the U.S. is $3.2, and production cost in the U.K. is £7. The current exchange rate is $1.28 = £1. The shipping cost is $1.6 per unit for any units shipped between the two countries. Sales prices equate to $120 in each country. a) How many should be made in each country? U.S. = U.K. = units. units. b) How much is the profit for each country? U.S. Profit = $ U.K. Profit = $ (round your response to the nearest dollar). (round your response to the nearest dollar).
Transcribed Image Text:Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is for 13,000 units, and the U.S. production capacity is 16,000 units. Demand in the U.K. is for 10,000 units, and the U.K. production capacity is 12,000 units. Production cost in the U.S. is $3.2, and production cost in the U.K. is £7. The current exchange rate is $1.28 = £1. The shipping cost is $1.6 per unit for any units shipped between the two countries. Sales prices equate to $120 in each country. a) How many should be made in each country? U.S. = U.K. = units. units. b) How much is the profit for each country? U.S. Profit = $ U.K. Profit = $ (round your response to the nearest dollar). (round your response to the nearest dollar).
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