American airlines is trying to decide how to go about hedging 70 million swiss francs in ticket sales receivable in 180 days. suppose it faces the following exchange and interest rates. spot rate: $0.6433-42/sfr forward rate (180 days): $0.6578-99/sfr dm 180-day interest rate (annualized): 4.01%-3.97% u. s. dollar 180-day interest rate (annualized): 8.01%-7.98% what is the hedged value of american’s ticket sales using a money market hedge? assume the first interest rate is the rate at which money can be borrowed and the second one the rate at which it can be lent.

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?