Blundell Biotech. Blundell Biotech is a$$ U$.$S$.-$based biotechnology company with operations and earnings in a number of foreign countries. The$$ company's profits by$$ subsidiary, in local currency$($in millions$),$ are shown in the following$$ table, LOADING...$,$ for $2013$ and $2014.$ The average exchange rate for each$$ year, by currency$$ pairs, was the following. Use the data to answer the following questions.

a$.$ What were Blundell$$ Biotech's consolidated profits in U$.$S$.$ dollars in $2013$ and$2014?$

b$.$ If the same exchange rates were used for both$$ years$-$what is often called a$$ "constant currency $$basis$"$long dashwas the change in corporate earnings on a constant currency$$ basis?

c$.$ Using the results of the constant currency analysis in part$$ b$,$ is it possible to separate$$ Blundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated$$ basis?

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Part $1$

a$.$ What were Blundell$$ Biotech's consolidated profits in U$.$S$.$ dollars in $2013$ and$2014?$

Consolidated profits or earnings is found by consolidating the converted profits in each foreign currency to U$.$S$.$ dollars for that period.$($This is simplified. Actual accounting practices would require the additional netting of any$$ intra$-$company transactions resulting to eliminate any$$ double$-$counting of$$ profits.$)$

Calculate the consolidated profits in U$.$S$.$ dollars in $2013$ and $2014$ below:$($Round to two decimal$$ places$)$

Net Income

Japanese

$($USD$)$

Subsidiary

$(2013)$

$(2014)$

Change $(\%)$