With the advent of NAFTA, Cranford Manufacturing has a U.S. division and a Mexico division. Each divisionbuilds specialty components that are used by both divisions. For each dollar in sales by the U.S. division,Mexico furnishes $0.20 in components, and for each dollar in sales of the Mexico division, the United Statesfurnishes $0.05 in components. Each division uses $0.10 worth of their components in their own division.1.Write the input-output matrix for this company. Make sure to order the matrix with U.S first, and thenMexico (in terms of rows and columns).2. Find the value of the components each division must produce to support external sales of $200 million bythe U.S. division and $180 million by the Mexico division. Give your answer in millions of dollars. Reportonly the number, not the units.

Mexico furnishes $0.20 in components - for each dollar in sales by the US divisionU.S. division…

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With the advent of NAFTA, Cranford Manufacturing has a U.S. division and builds specialty components that are used by both divisions. For each doll Mexico furnishes $0.20 in components, and for each dollar in sales of the furnishes $0.05 in components. Each division uses $0.10 worth of their co