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Question - Bespoke Joiners is quoting to refit a local restaurant. An analysis of the time and materials required for the refit has been prepared at a cost of €1,000. The required labour will be 750 hours at an average cost of €30 per hour. The cost of the required materials is €60,000 at current purchase prices. A quarter of these materials are currently held in stock by Bespoke but can no longer be used. Their scrap value is €5,000. Fixed overheads of €10,000 will be assigned to the work. What is the minimum amount Bespoke Joiners could quote without lowering their profits?
A. €82,500
B. €73,500
C. €72,500
D. €77,500
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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