Inc. a U.S. based exporter that exclusively sells its products in Great Britain.,Inc expects to sell 2,000 units at a price of GBP 10.00 per unit. inc currently produces in KY and has a variable production cost of USD 8.10 per unit, and total fixed costs of USD 5,000. Use an expected XUSD/GBP = 1.50. What is inc’s expected cash flow from operations?
rate positively ... let me know if you need any clarification..
| Computation of expected cash flow from operation | |||||
| A | sales =2000*10*1.5 | 30000 | |||
| Less | |||||
| Cost =2000*8.1 | 16200 | ||||
| Fixed cost = | 5000 | ||||
| B | Total cost | 21200 | |||
| C=A-B | Cash from operation = | 8800 | |||
Inc. a U.S. based exporter that exclusively sells its products in Great Britain.,Inc expects to sell 2,000 units at a pr...
Firm X a U.S. based exporter that exclusively sells its products in Great Britain. Firm X, expects to sell 15,000 units at a price of GBP 10.00 per unit. Firm X produces in Newport News, VA and has a variable production cost of USD 7.00 per unit, and total fixed costs of USD 60,000. What is Firm X’s FX operating exposure? Please use 1.50 as a base FX rate for your analysis and then lower it to 1.35 as in...