BPT manufactures bicycles in country A. It uses batch production. The Operations Director is preparing a break-even chart for one of BPT's bicycles, as shown in Fig. 1.1. The directors are considering ways to lower BPT's break-even level of output. BPT imports $$\(60 \%\)$$ of its raw materials and exports its bicycles to 8 countries. The Managing Director wants to know how a depreciation in country A's exchange rate and the introduction of import tariffs might affect BPT. Explain two ways a depreciation in country A's exchange rate might affect BPT. Way 1 : ........................................................................................................................... ....................................................................................................................................... Explanation: .................................................................................................................. ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... Way 2 : ........................................................................................................................... ....................................................................................................................................... Explanation: .................................................................................................................. ....................................................................................................................................... ....................................................................................................................................... .......................................................................................................................................

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