Northline Gym serves commuters while opening a second outlet; the case evidence includes net profit margin of ?5,433, sales of 733 units, and a 20% change in costs or demand. Justify how the business should respond to Explain how exchange rates can affect profits and sales for businesses that export.

Anchor the response in evidence. Apply sales, profit, exchange rates to Northline Gym serves commuters while opening a second outlet, then explain how the decision changes cash inflow, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for local community, uses figures such as ?8,833 or 20%, and reaches a supported judgement based on the business objective.

Separate the trade-offs before concluding. This explanation is anchored to Exchange rates and Globalisation because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates gross and net profit, which helps the final judgement stay precise.