. High Profile Printers exports to Brazil whose currency trades at R1.8/$. Expeorts are currently 100,000 per?

per year at $200 each. A rumor exists that the exchange rate will be R2/$ in two weeks and then remain fixed. Accepting this forecast, HPP faces the following choices

a.Maintain the same price in Real so their sales are not hurt.

b.Maintain the same price in U.S. Dollars and experience a 20% sales loss. Costs are $120 each.