Question: Problem 16: Norse Inc. a U.S. based exporter that exclusively sells its products in Great Britain. Norse, expects to sell 2,000 units at a price

Problem 16: Norse Inc. a U.S. based exporter that exclusively sells its products in Great Britain. Norse, expects to sell 2,000 units at a price of GBP 10.00 per unit. Norse currently produces in Highland Heights, KY and Leeds (Great Britain) has a variable production cost of GBP 5.40 per unit, and total fixed costs of USD 5,000. What is the new FX operating exposure after operational hedging (variable cost in GBP)?

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