Question: please show work for each part Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is for 13,000
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 17,000 units. Demand in the U.K. is for 8,000 units, and the U.K. production capacily is 12,000 units. Production cost in the U.S. is 53.7 , and production cost in tho U.K. is E7. The current exchange rate is $1.37=CF. The shipping cost is $1,6 per unit for any units shipped between the two countries. $ ales prices equate to $125 in each country. a) How many should be made in each country? U.S. =17,000 units. U.K. = units. b) How much is the profit for each country? U.S. Profit =$1576900 (round your rosponse to the nearest dollar). UK. Profit =$ (round your response to the nearest dollar)
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