Blundell Biotech. Blundell Biotech is aU.S.-based biotechnology company with operations and earnings in a number of foreign countries. Thecompany's profits bysubsidiary, in local currency(in millions), are shown in the table LOADING...

for 2013 and 2014.

a. What was BlundellBiotech's consolidated profits in U.S. dollars in 2013 and2014?

b. If the same exchange rates were used for bothyears, what was 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 separateBlundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidatedbasis?

(a)

Japanese

Subsidiary

British

Subsidiary

European

Subsidiary

Chinese

Subsidiary

Russian

Subsidiary

United States

Subsidiary

Net Income

JPY

GBP

EUR

CNY

RUB

USD

2013

1 comma 4981,498

90.4390.43

199.13199.13

169.03169.03

129.07129.07

366.88366.88

2014

1 comma 4681,468

107.32107.32

216.08216.08

203.92203.92

124.37124.37

390.33390.33

(b)

Exchange Rate

JPY= 1 USD

USD= 1 GBP

USD= 1 EUR

CNY= 1 USD

RUB= 1 USD

USD

2013

97.4997.49

1.4671.467

1.35811.3581

6.06836.0683

31.8931.89

11

2014

105.92105.92

1.67691.6769

1.34331.3433

6.19096.1909

38.638.6

11