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New fx operating exposure after operational hedging

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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. Using 1.50 and 1.35 as the scenario FX rates, what is the new FX operating exposure after operational hedging (variable cost in GBP)?

Reference no: EM132674806

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