1.Glaso company reported income of $918,000 based on variable costing. Beginning and ending inventories were 56,800 units and 55,600 units, respectively. Assume the fixed overhead per unit was $2.15, the beginning and ending inventory. absorption costing.

2. The economy is open to capital inflows and outflows and therefore net capital inflow equals imports (IM) minus exports (X). a) X = $60 millionIM = $95 millionPrivate savings = $325 millionI = $300, budget balance. b) Private savings = $325 millionI = $400 millionBudget balance = $10 million, IM X.