Question: Problem 2. (14 points) Consider a firm with a plant in the U.S. and Mexico. A U.S.-based shipper charges $1.40 per unit to ship between

Problem 2. (14 points) Consider a firm with a plant in the U.S. and Mexico. A U.S.-based shipper charges $1.40 per unit to ship between the two countries. Assume no taxes and consider the following data. The United States Mexico Weekly Demand Weekly Capacity Sales Price Production Cost 10,000 16,000 $30 $12 8,000 14,000 (Mexican peso) $400 (Mexican peso) $200 (a) (7 points) Suppose that the exchange rate is $1.00 (Mexican peso)= $0.049 (U.S.). What is the best production and distribution plan, i.e., how much should be made in each country, and how much should be shipped between countries? (b) 17 points) Given your plan in part a, what is the profit in each country (expressed in dollars)

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