You are given the following information. The current dollar−pound exchange rate is $2 per British pound. A U. S. basket that costs $100 would cost $120 in the United Kingdom. For the next year, the Fed is predicted to keep U. S. inflation at 2% and the Bank of England is predicted to keep U. K. inflation at 3%. The speed of convergence to absolute PPP is 15% per year.
a) What is the expected U. S minus U. K. inflation differential for the coming year?
b) What is the current U. S real exchange rate qUS/UK with the United Kingdom?
c) How much is the dollar overvalued / undervalued?
d) What do you predict the U. S. real exchange rate with the United Kingdom will be in one year's time?
e) What is the expected rate of real depreciation for the United States (versus the United Kingdom)?
f) What is the expected rate of nominal depreciation for the United States (versus the United Kingdom)?
g) What do you predict will be the dollar price of one pound a year from now?

Problem 2-18 job-order costing for a service company [lo2-1, lo2-2, lo2-3]speedy auto repairs uses a job-order costing system. the company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 10,000fixed overhead cost $ 90,000variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate.2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 600direct labor cost $ 180direct labor-hours used 2 compute mr. wilkes' total job cost. 3. if speedy establishes its selling prices using a markup percentage of 30% of its total job cost, then how much would it have charged mr. wilkes?

Gdonald was unhappy that his company did not provide good transport facilities. he found it very strenuous to drive to work on his own, and this eventually led to job dissatisfaction. hence, he recommended ways to solve this problem. according to the evln model, this information suggests that donald's main reaction to job dissatisfaction was:

When the national economy goes from bad to better, market research shows changes in the sales at various types of restaurants. projected 2011 sales at quick-service restaurants are $164.8 billion, which was 3% better than in 2010. projected 2011 sales at full-service restaurants are $184.2 billion, which was 1.2% better than in 2010. how will the dollar growth in quick-service restaurants sales compared to the dollar growth for full-service places?