acuña leather goods. demagistris fashion company, based in new york city, imports leather coats from acuña leather goods, a reliable and longtime supplier, based in buenos aires, argentina. payment is in argentine pesos. when the peso lost its parity with the u. s. dollar in january 2002, it collapsed in value to ps4.0/$ by october 2002. the outlook was for a further decline in the peso's value. since both demagistris and acuña wanted to continue their longtime relationship, they agreed on a risk-sharing arrangement. as long as the spot rate on the date of an invoice is between ps3.5/$ and ps4.5/$, demagistris will pay based on the spot rate. if the exchange rate falls outside this range, they will share the difference equally with acuña leather goods. the risk-sharing agreement will last for six months, at which time the exchange rate limits will be reevaluated. demagistris contracts to import leather coats from acuña for ps9 comma 000 comma 000 or $ 2 comma 250 comma 000 at the current spot rate of ps4.0/$ during the next six months. a. if the exchange rate changes immediately to ps6.0/$, what will be the dollar cost of six months of imports to demagistris? b. at ps6.0/$, what will be the peso export sales of acuña leather goods to demagistris fashion company? a. if the exchange rate changes immediately to ps6.0/$, what will be the dollar cost of six months of imports to demagistris? b. at ps6 0/$ what will be the peso export sales of acuna leather goods to demagistris fashion company?

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600