1. Purchasing Power Parity theory

2. Suppose that an ounce of gold sells for $2000 in the United States and 1000 euros in France. A euro currently trades for $1.50 . it costs $100 to ship an ounce of gold between the two countries. Assume it is legal to buy and ship gold in both countries. Then

3. Suppose that Laborland has a population of 100 people. Five people are under 16 years of age and five people are retired. Ten people have given up looking for work. Sixty people are actively employed and 20 people are actively seeking work. If five of those give up looking for work, then

Q1. Assume that American rice is sold for $100 per bushel, Japanese rice is sold 16,000 yen per bushel, and the nominal exchange rate is 80 yen per dollar. Assume that the nominal exchange rate remains unchanged.

Select one:

a. Buy a bushel of American rice and then sell it in Japan, making a profit of 80,000 yen.

b. Buy a bushel of American rice and then sell it in Japan, making a profit of 100 dollars.

c. Buy a bushel of Japanese rice and then sell it in the US, making a profit of 100 dollars.

d. The buy and sell process would continue until the price of American rice rise higher than the that of Japanese rise.

e. The buy and sell process would continue until no profit can be made

f. A and D

g.B and E

h. C and D

i. C and E

j. None of the above is correct

2. Which of the following would both make a country’s real exchange rate rise ?

Select one:

a. its budget deficit increases and bonds issued in the country become riskier

b. bonds issued in that country become riskier and it imposes an import quota

c. its budget deficit decreases and it imposes an import quota

d. a sudden capital flight

e. None of the above are correct.

3. In the open-economy macroeconomic model, the supply of loanable funds comes from

Select one:

a. the sum of domestic investment and net capital outflow.

b. private saving alone.

c. foreign borrowing alone.

d.Y-C-G.

e. None of the above are correct.

explain plz

or the following exercise, complete the calculations below. Evaluate different capital investment appraisal techniques by completing the calculations shown below: Bongo Ltd. is considering the selection of one of two mutually exclusive projects. Both would involve purchasing machinery with an estimated useful life of 5 years. Project 1 would generate annual cash flows (receipts less payments) of £200,000; the machinery would cost £556,000 with a scrap value of £56,000. Project 2 would generate cash flows of £500,000 per annum; the machinery would cost £1,616,000 with a scrap value of £301,000. Bongo uses straight-line depreciation. Its cost of capital is 15% per annum. Assume that all cash flows arise on the anniversaries of the initial outlay, that there are no price changes over the project lives, and that accepting either project will have no impact on working capital requirements. Assess the choice using the following methods by completing the calculations shown below: ARR NPV IRR Payback period Calculate the missing answers: Project 1 Project 2 ARR (see workings) 33% ??? NPV (£’000) ??? 210 IRR 25% ??? Payback Period (yrs) ??? 3.2 ARR workings (Project 1) Cash flows 200 Less: depreciation (see below) 100 Accounting profits 100 These profits are the same each year in this question. Annual depreciation (Cost – SV) / 5 (556,000 – 56,000) / 5 100 Average NBV of investments (556 + 56) /2 306 ARR

Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabilities have been available only on expensive weight machines used primarily by physical therapists. At a recent trade show, demonstrations of the machines resulted in significant dealer interest. In fact, the number of orders that BFI received at the trade show far exceeded its manufacturing capabilities for the current production period. As a result, management decided to begin production of the two machines. The two machines, which BFI named the BodyPlus 100 and the BodyPlus 200, require different amounts of resources to produce.

The BodyPlus 100 consists of a frame unit, a press station, and a pec-dec station. Each frame produced uses 4 hours of machining and welding time and 2 hours of painting and finishing time. Each press station requires 2 hours of machining and welding time and 1 hour of painting and finishing time, and each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 100.

The BodyPlus 200 consists of a frame unit, a press station, a pec-dec station, and a leg- press station. Each frame produced uses 5 hours of machining and welding time and 4 hours of painting and finishing time. Each press station requires 3 hours of machining and welding time and 2 hours of painting and finishing time, each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time, and each leg-press station requires 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 200.

For the next production period, management estimates that 500 hours of machining and welding time; 350 hours of painting and finishing time; and 120 hours of assembly, testing, and packaging time will be available.

The net retail price of the BodyPlus 100 and the BodyPlus 200 are $350 and $445,respectively. Although some flexibility may be available to BFI because of the unique capabilities of the new machines. Authorized BFI dealers can purchase machines for 70% of the suggested retail price. BFI’s president believes that the unique capabilities of the BodyPlus 200 can help position BFI as one of the leaders in high-end exercise equipment. Consequently, she states that the number of units of the BodyPlus 200 produced must be at least 35% of the total production of BodyPlus 100.

Analyze the production problem at Better Fitness, Inc., and prepare a report for BFI’s president presenting your findings and recommendations. The report should include the following items:

• The recommended number of BodyPlus 100 and BodyPlus 200 machines (In other words, find the optimal level of production for BodyPlus 100 and BodyPlus 200 using linear programming model).
  • Objective function: Total profit
  • BodyPlus 200 requirement constraint
  • Non-negativity constraint
  • Time Constraint:
    • Machining & Welding
    • Painting & Finishing
    • Assembly, Test, and Packaging
• The effect on profits of the requirement that the number of units of the BodyPlus 200 produced must be at least 25% of the total production of BodyPlus 100. where efforts should be expended in order to increase contribution to profits
• Include a copy of your linear programming model

To the expert that requested additional information. There is not more information. This is the question in its entirety. This is for a quantitative business modeling class in which we need to use excel’s solver tool. Please provide step by step instructions.

enosha Winter Services is a small, family-owned snow-removal business. For its services, the company has always charged a flat fee per hundred square metres of snow removal. The current fee is $11.60 per hundred square metres. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on more remote properties that require considerable travel time. The owner’s daughter, home from school for the summer, has suggested investigating this question using ABC. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Snow removal Square metres cleaned (00s) 36,730 hundred square metres Travel to jobs Kilometres driven 16,250 kilometres Job support Number of jobs 400 jobs Other (costs of idle capacity and organization-sustaining costs) None NA The total cost of operating the company for the year is $405,000, which includes the following costs: Wages $ 156,000 Supplies 41,000 Snow removal equipment depreciation 21,000 Vehicle expenses 41,000 Office expenses 62,000 President’s compensation 84,000 Total cost $ 405,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption across Activity Cost Pools Snow Removal Travel to Jobs Job Support Other Total Wages 80 % 10 % 0 % 10 % 100 % Supplies 100 % 0 % 0 % 0 % 100 % Snow removal equipment depreciation 85 % 0 % 0 % 15 % 100 % Vehicle expenses 0 % 65 % 0 % 35 % 100 % Office expenses 0 % 0 % 45 % 55 % 100 % President’s compensation 0 % 0 % 35 % 65 % 100 % Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 3. The company recently completed a 3,700-square-metre snow removal job at Hometown Hardware—a 77-kilometre round-trip journey from Kenosha’s offices. Compute the cost of this job using the ABC system. (Round your answers to 2 decimal places.) 4. The revenue from the Hometown Hardware job was $429.20 (3,700 square metres at $11.60 per hundred square metres). Prepare a report showing the margin from this job. ( Round your answers to 2 decimal places.)

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.55 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time.

The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 11,500 hundred square feet Travel to jobs Miles driven 241,000 miles Job support Number of jobs 1,900 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable

The total cost of operating the company for the year is $353,000 which includes the following costs: Wages $ 144,000 Cleaning supplies 26,000 Cleaning equipment depreciation 14,000 Vehicle expenses 26,000 Office expenses 58,000 President’s compensation 85,000 Total cost $ 353,000 Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 79 % 15 % 0 % 6 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 75 % 0 % 0 % 25 % 100 % Vehicle expenses 0 % 82 % 0 % 18 % 100 % Office expenses 0 % 0 % 56 % 44 % 100 % President’s compensation 0 % 0 % 30 % 70 % 100 % Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $141.30 (600 square feet @ $23.55 per hundred square feet). Calculate the customer margin earned on this job. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 9 of 9 Total9 of 9

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $352,000, which includes the following costs:

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities  

Job support consists of receiving calls from potential customers at the home office, scheduling
jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity Rates for the activity cost pools. (Round your answer to 2 decimal places)

3. The company recently completed a 4 hundred square foot carpet-cleaning job at the Flying N ranch—a 54.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.)

4. The revenue from the Flying N ranch was $93.60 (4 hundred square feet at $23.40 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)

Problem 7-20 Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5]

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $366,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $191.60 (800 square feet @ $23.95 per hundred square feet). Calculate the customer margin

numbers 1, 2, and 3 I got. I just cant find number 4. I always seem to have a hard time with customer margin! Thanks for all the help