The only nail salon in town offers two services: manicures and pedicures. The salon has two types of customers: one type of customer generally wears sandals, and one type of customer generally wears boots. Sandal wearers are willing to pay $32 for a pedicure and $8 for a manicure. Boot wearers are willing to pay $24 for a pedicure and $24 for a manicure. Assume that the salon can provide each of these services at a marginal cost of $2 per service. There are equal numbers of each type of customer. V 1st attempt See Hint Suppose the salon is able to use tying (bundling) to price manicures and pedicures, though it may still also sell each service individually. If the salon wants to maximize profits, it should price the services as follows:

Price of the bundle (manicure and pedicure together) = $
Price of a manicure>$ Price of a pedicure= $

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

On january 1, eastern college received $1,350,000 from its students for the spring semester that it recorded in unearned tuition and fees. the term spans four months beginning on january 2 and the college spreads the revenue evenly over the months of the term. assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on february 28?

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?