Question: Problem 1. (17 points] Consider a firm with a plant in the U.S. and the U.K.. A U.S.- based shipper charges $1.10 per unit to

Problem 1. (17 points] Consider a firm with a

Problem 1. (17 points] Consider a firm with a plant in the U.S. and the U.K.. A U.S.- based shipper charges $1.10 per unit to ship between the two countries. Assume no taxes and consider the following data: The United States The United Kingdom Weekly Demand Weekly Capacity 12,000 20,000 $20.00 15,000 25,000 19.00 Sales Price Production Cost $9.50 8.20 = (a) [9 points] Suppose that the exchange rate is 1.00 = $1.32. What is the best pro- duction and distribution plan, i.e., how much should be made in each country, and how much should be shipped between countries? (b) [8 points] Given your plan in part a, what is the profit in each country (expressed in dollars)

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