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Hamilton and Battles, Ltd. produces and sells two products-guitar cases and violin cases. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line's return on investment. The following data is from the most recent year of operations. see attachment.
(a) Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the guitar case product line manager was able to increase sales volume such that the new asset turnover was 1.75 times. What would be the new operating income? (Round variable cost ratio to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 12,500.)
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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