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1. Compute the cost of a regular and special meal using the new overhead pools and cost drivers. What explains the differences between these costs and the ones in Exhibit 1?
2. What is your assessment of the overhead pools and cost drivers that Ms. Canard has chosen? How, if at all, might they be improved?
3. Assuming the overhead pools and cost drivers give a better indication of actual costs, what should Mr. Larson do with this information? In answering this question, you should address the questions he raises at the end of the case.
Attachment:- Assignment.rar
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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