Fresno OY, a Norwegian corporation, wholly owns Ceretony Inc., a subsidiary located and operating in Canada. Given the limited information provided, please (a) determine the appropriate transfer pricing method and (b) calculate the transfer price in the following three scenarios.

1. Fresno OY manufactures window units at a cost of $150 each and sells them to an unrelated distributor in the United States for $450 each. Fresno sells the same exact window units to Ceretony Inc., who then sells them to customers in Canada.

2. Ceretony Inc. manufactures t-shirts at a cost of $15 each and sells them to Fresno, who then sells the t-shirts to Norwegian customers at a retail price of $30. Fresno adds no significant changes/value to the shirts before sale. Norwegian clothing retailers normally earn a gross profit of 40 percent on sales price.

3. Fresno OY manufactures yo-yos at a cost of $20 each and sells them to Ceretony for distribution in Canada (sales price $25). Other Norwegian yo-yo manufacturers sell their products to unrelated customers and normally earn a gross profit equal to 20 percent of the production cost.

1- suppose the money supply is $14 trillion, and the fed sells bonds on the open market in sufficient quantities to decrease the money supply by $500 billion. what impact will this have on the interest rate, investment spending, real GDP, and the price level? draw graphs to illustrate your points, and describe them and the points thereon thoroughly.

2- the federal reserve system, also known simply as the fed, is the central bank of the united states. the fed has several important functions such as supplying the economy with currency, holding deposits of banks, lending money to banks, regulating the money supply, and supervising the banking system. explain how the federal reserve and the banking system creates money (i.e., increases the supply of money). is this an inherently inflationary practice? explain the factors that affect the demand for money.

3- suppose the fed decreases the discount rate and buys bonds sufficient to increase the money supply by $200 billion. what impact will this have on the interest rate, investment spending, real GDP, and the price level? would that be a good idea in today's economic environment? why or why not? draw graphs to illustrate your points, and describe them and the points thereon thoroughly.

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Beginning inventory 0 Units produced 46,000 Units sold 41,000 Selling price per unit $ 79 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 562,000 Manufacturing costs: Direct materials cost per unit $ 14 Direct labor cost per unit $ 7 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 874,000 Management is anxious to assess the profitability of the new camp cot during the month of May.

Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May.

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 43,000 Units sold 38,000 Selling price per unit $ 76 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 556,000 Manufacturing costs: Direct materials cost per unit $ 16 Direct labor cost per unit $ 7 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 731,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing.

a. Calculate the unit product cost.

b. Prepare an income statement for May. 2. Assume that the company uses variable costing.

a. Calculate the unit product cost.

b. Prepare a contribution format income statement for May.

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

Assume that the company uses absorption costing.

1a. Determine the unit product cost.

1b. Prepare an income statement for May.

Assume that the company uses variable costing.

2a. Determine the unit product cost.

2b. Prepare a contribution format income statement for May.

Country : Australia Chile Iceland New Zealand South Africa

Abalone Cost : AUD 93,500 CLP 50,990,000 ISK 5,400,000 NZD 104,000 ZAR 640,000

Exchange Rate: $1 U.S. = 1.1 AUD 585 CLP 61 ISK 1.3 NZD 7.8 ZAR

Refer to the table above. An international seafood supplier is offered 9.52 million yen today for 1000 pounds of abalone frozen in the shell. One thousand pounds of abalone can be sourced from various countries at the prices shown above. The current market exchange rates between the United States and the other relevant currencies are also shown. In addition, $1 U.S. = 102 yen. What is the value, in U.S. dollars, of the best deal the international seafood supplier can make?

A) $14,333 B) $14,833 C) $13,333 D) $12,333

Solution:

9.52 million / 102 yen = $93,333 ; cost = 104,000/1.3 NZD = $80,000; $93,333 - $80,000 = $13,333 .

Can someone explain to me why after calculating the yen cost we have to subtract from the NZD specifically? Why just New Zealand and not the other countries?

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

Engaging in regular exercise has both psychological and physical benefits. You believe you have a novel way to help obese adults start and maintain a regular exercise program. Your idea is to have them visualizing themselves engaging in exercise (walking) via virtual reality for two weeks before having them actually go out and walk. From data compiled by the National Institutes of Health, you know that obese adults in the United States walk, on average, 0.40 miles per day, with a standard deviation equal to 0.16 miles, and that the distance walked per day by obese adults is normally distributed. You obtain a sample of 49 obese adults for your study, apply the exercise program, and determine that they walked, on average, 0.45 miles per day following the virtual reality intervention. You want to assess whether this intervention has been successful. So to get started on this study…

1. State a set of appropriate hypotheses for this study using statistical language and notation.

2. Are your hypotheses directional or non-directional?

3. Is your statistical test going to be a one-tailed or two-tailed test?

4. State an appropriate alpha level.