The project requires three spreadsheets, which may be computer based or manually written. The spreadsheets are titled assumptions 1,2,3. The assumptions are described in 1,2,3.

The assumptions are described in the Three Assumptions file below.

Show effects to a company when the currency of their sales weakens against the currency of their imported raw material (economic exposure) Show effects to a subsidiary's reported earnings when the subsidiary's currency weakens against the currency of the parent (translation exposure) Introduce Price Elasticity Discuss mechanics of exhibit 1 and the three required assumption analyses EXHIBIT) PER ": 1, 368 QUANTITY (UNITS) L 8,000,000 40,000 UNIT SALES IN UK 12200 UL COSTS -CONT. LABORIUSRI ABLO) - IMPORT-COFFEE MCH. 90 (inace -90 EACH) -MARKETING DISTRBUTO COSTS - Fixed (200,000) 40,000 3,600,000 K2,607,059) 1/400,000) EUROS - OTHER FIVED COSTS PROFIT OF UK SUBSIDIARY r500,000) pouvos 44,252,941 x 1.36 3, 600 loopL 1.36 VL 5,784,000 EUROS . EXHIBIT I PRICE -2200 VOLUME 40,000 14: 1.36 VARIABLE COST L200,000 FIXED COST MARRETIt400,000 OTHER FIVPOL 500,000 How much DID COFFEE MACHINE COST INCREASE IN L 7 AT 1,36 * . 1 EURO = .7353 L AT 1.16 /Z 1 EURO = .8621 L ,8621 L73532 = 12682 .1268 L .73532 17.2% ASSUMPTION L WEAKENS 1 . IL = 1.36 to 1.16 AssuMPTION 2 . PRICE RAISED 17.5% IN L IL- VOLUME GOES Down (17.5% X.8) 1.16 ASSUMPTION 3 PRICE RAISED 17.5.% Ne VOLUME GOES DOWN OLUM 40753 22.077