Henry advises the company to use producer price index.
<h2>
What is producer price index?</h2>
The producer price index (PPI) tracks the typical prices domestic producers of goods and services are paid. It is determined by dividing the current prices that sellers of a representative basket of commodities have received by the prices of those same goods in a base year multiplied by 100.
<h3>
Difference between PPI and CPI?</h3>
In contrast to the Consumer Price Index (CPI), which summarizes prices from the viewpoint of purchasers, the Producer Price Index (PPI) summarizes price level from the perspective of sellers. Because it provides early information on consumer demand and consumption, PPI is regarded as a solid economic indicator. This is so because the prices that producers obtain are a sign of the retail demand.
<h3>
How can the producer price index be used to control inflation?</h3>
The impact of consumer market inflation on changes in prices and measurements can be reduced or entirely eliminated by using the producer price index. Instead, by considering the price of goods, whether that price increases or decreases, and when the commodities are dispatched for distribution, the PPI can be utilized to correctly determine the inflation rate.
learn more about PPI and CPI at <u><em>brainly.com/question/14321574?referrer=searchResults</em></u>
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Answer: $290,000
Explanation:
Flexible budget for 20,000 tons:
Fixed manufacturing costs (Period costs constant irrespective of tons produced) $50,000
Variable manufacturing costs
($12 × 20,000) $240,000
Total Manufacturing costs for 20,000 tons will be:
$50,000 + $240000 = $290,000
Note: Variable costs varies based on the number of units produced whereas Fixed costs are the period costs that are constant irrespective of units produced.
Answer:
1. Margin = 8%
2. Turnover = $7,500,000
3. Return on Investment = 12%
Explanation:
Sales for the year = $7,500,000
Net Operating Income = $600,000
Average Operating Assets = $5,000,000
1. Therefore, Margin = ( Net operating Income/Total Sales ) 100 = 8%
2. Turnover = Sales for the period = $7,500,000
3. Return on Investment = Net Income/Average Operating assets
= $600,000/$5,000,000 = 12%
The closest answer is to act as a motivating force behidn the free market. the purpose of competition is for businesses to try to outdo each other in order to earn more. By doing this, businesses will come up with newer ways to please their customers. From competition, we will come up with amazing innovative ideas and better products. This is of course better for the consumers and better for the economy because there will be more productivity