Madison Company is a large manufacturer and distributor of cake supplies. It is based in Chicago (Headquarters) and Trinidad. It sends supplies to firms throughout the United States and the United Kingdom . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Madison ships the supplies upon demand Given that one-third of the company sales are exports to the United Kingdom and invoices for exports are in US dollars, the demand for its exports is highly sensitive to the value of the British pound. In order to maintain its inventory at a proper level, it must forecast the total demand for its products which is somewhat dependent on the forecasted value of the pound. In your memo separate demand related factors from the supply related factors, that may influence exchange rate movements. Include any possible government
Madison Company is a large manufacturer and distributor of cake supplies. It is based in Chicago
(Headquarters) and Trinidad. It sends supplies to firms throughout the United States and the United
Kingdom . It markets its supplies through periodic mass mailings of catalogues to those firms. Its
clients can make orders over the phone and Madison ships the supplies upon demand
Given that one-third of the company sales are exports to the United Kingdom and invoices for exports are in US dollars, the demand for its exports is highly sensitive to the value of the British pound. In order to maintain its inventory at a proper level, it must
Step by step
Solved in 3 steps
