Consider A Firm With A Plant In The U S And Canada A U S Based Shipper Charges 1 00 Per Unit To Ship Between The Two 1 (29.7 KiB) Viewed 26 times
Consider a firm with a plant in the U.S. and Canada. A U.S.-based shipper charges $1.00 per unit to ship between the two countries. Assume no taxes and consider the following data. U.S. Canada 6,000 7,000 15,000 10,000 Weekly Demand Weekly Capacity Sales Price Production Cost $40 Can$50 $17 Can$25
a. Suppose that the exchange rate is Can$1.00 (Canada) = $0.76 (U.S.). What is the best production and distribution plan, i.e., how much should be made in each country, and how much should be shipped between countries? (Please, enter your answers as a whole number). The U.S. production is units. Canada production is units. units should be shipped between countries. b. Given your plan in part a, what is the profit in each country (expressed in dollars)? Profit in the U.S. = $ Profit in Canada = $
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