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Based on the answer for the cost of imported materials, why is it multiple by 2 to get D$
Looking just at Red (other products similar) and imported costs:
At the current exchange rate (D$1·00 = K$2·00) 50 % of costs are imported:
50,000 x D$ 2.4/2 = 60,000. At current rates this represents 2 x 60,000 = K$120,000 being invoiced
However, if the exchange rate moves to D$1·00 = K$2·20, these costs when converted will be D$1·00 = K$2·20 so:
120,000/2.2 = D$54,545
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