Business, 10.03.2022 21:10 marcusajns

Susan runs a factory in Texas that produces heaters. She has done a cost analysis on production and found that it would cost her $5.40 US to buy the input materials in the United States (per heater); 5.4 pesos (Mexican currency) in Mexico (per heater); and $6.00 Canadian (in Canada). All transport costs are included in the input cost. Assume the exchange rate for the peso to be $0.80 of $1.00 US, and that $1.00 Canadian is $0.90 US. What production structure should Susan’s factory use? A.
import materials from Canada
B.
import materials from Mexico
C.
export materials to Mexico
D.
use materials from the United States

Answers: 1

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Susan runs a factory in Texas that produces heaters. She has done a cost analysis on production and...