It is two shoes. Leave a thanks if it benefited you!
Answer: Option (b) is correct.
Explanation:
Given that,
Revenues = $300,000
Merchandise it purchased = $75,000
Salaries paid = $14,000
Owners invested = $23,000
Borrowed on a five-year note = $23,000
Interest paid = $3,000
Paid for a two-year insurance policy = $6,800
Income tax rate = 9%
Gross Margin = Revenues - Cost of Goods Sold
= $300,000 - $75,000
= $225,000
Profit before tax = Gross Margin - Salaries - Insurance payment - Interest
= $225,000 - 14,000 - 3,400 - 3,000
= $204,600
Net Income = Profit before tax - Tax at 9%
= $204,600 - 18,414
= $186,186
The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.
<h3>How are investment spending and interest rates related?</h3>
Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.
If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.
Find out more on interest rates at brainly.com/question/26540958.
If the price of a product falls to what is considered a bargain price, a shortage would occur.
A shortage occurs when the quantity demanded exceeds the quantity supplied. A shortage occurs when price is below the equilibrium price.
A surplus is when the quantity supplied exceeds the quantity demanded. A surplus occurs when price is above the equilibrium price.
When the price of a good falls to what is considered a bargain price by consumers, it means that the price of the good is below the equilibrium price.
When the price of a good is below equilibrium, quantity supplied would fall and the quantity demanded would exceed supply. As a result, there would be a shortage.
To learn more about shortage, please check: brainly.com/question/16137233?referrer=searchResults