Exchange rate movements suppose a basket of goods in paris costs euro 130 and the same basket purchased in new york costs $ 154. a. at what exchange rate between euros and dollars is the cost of the basket the same in each city? b. now suppose that over the next year inflation in france is expected to be 3% while in the u. s. the forecast is for 6% inflation. what exchange rate do you expect a year from now?

Abbington company has a manufacturing facility in brooklyn that manufactures robotic equipment for the auto industry. for year 1, abbingtonabbington collected the following information from its main production line: actual quantity purchased-200 units, actual quantity used-110 units, units standard quantity-100 units, actual price paid-$8 per unit, standard price-$10 per unit. atlantic isolates price variances at the time of purchase. what is the materials price variance for year 1? 1. $400 favorable. 2. $400 unfavorable. 3. $220 favorable. 4. $220 unfavorable.