Answer both parts

Deccan Electronics Ltd., in Noida Export processing zone, exports split air conditioners to Germany by importing all the components from Singapore. The company is exporting 2,400 units at a price of Euro 500 per unit. The cost of imported components is S$800 per unit. The fixed costs and other variable costs per unit are Rs.1,000 and Rs.1,500 respectively. The cash flows in foreign currencies are due in six months. The current exchange rates are as follows Rs./Euro 51.60/55 Rs./S$ 27.20/25 After six months the exchange rates (at the time of receipt and payment of foreign currency) turn out as follows: Rs./Euro : 52.00/05 Rs./S$ :27.70/75 a. You are required to calculate the loss/gain due to the transaction exposure. b. Based on the following additional information, calculate the loss/gain due to transaction and operating exposure if the contracted price of split air conditioner is Rs.25,000 The current exchange rates change to Rs./Euro :51.75/80 Rs./S$ 27.10/15 Price elasticity of demand is estimated as 1.5 Payments and receipts are to be settled/received at the end of sixth months