Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 33

Exchange Rates and Export Decision
Crackle Cookie Company is a relatively new company and so far has sold it's products only in its home country, Denmark.n December, Crackle determined that it had excess capacity to produce more of its special Christmas cookies.t is trying to decide whether to use that capacity to ship a batch of cookies overseas.he marketing department has determined that the United States and Great Britain are the two most viable markets.rackle has enough excess capacity to produce only one batch, which can be shipped to either country.he materials and labor cost to produce the batch amount to 8,500 kroner.he marketing department, which located a U.S.hipping company that could deliver to either location, also provided the following information:

Instructions
a.f Crackle exports the batch to the United States, what is its estimated profit/loss in Danish kroner
b.f Crackle exports the batch to Great Britain, what is its estimated profit/loss in Danish kroner
c.f the British pound has exhibited rather large fluctuations relative to the Danish kroner recently, how might this impact Crackle's decision as to which country to ship to