Answer:
Holmes should sell process the product further, because the profit if process further is higher than sell product now.
Explanation:
Net profit if sell product now is $37,500 ( = sales to another manufacturer $97,500 – already spent $60,000)
Sales as in process further/ Incremental Accounting
Sales: $695,125 (=$415 x 1,675 units)
Additional Process costs: $485,570 (=$290 x 1,675 units)
Net profit if process further = total sales $695,125 – already spent $60,000 – additional process cost $485,570 = $149,555, higher than profit $37,500 if sell now.
Answer:
Doing a financial statement analysis.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.
Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.
Answer:
According to fisher equation
(1+nominal Interest rate)=(1+real interest rate)(1+inflation)
1) So 1.17=(1+R)(1.13)
1+R=1.17/1.13
R=1.035-1
R=0.0353
Real interest rate = 3.53 percent
2) (1+NIR)= 1.03*1.04
1+ NIR= 1.072
NIR= 0.072
Nominal interest rate = 7.2 percent
A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.
A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.
Explanation:
The aggregate demand curve shows a relationship between aggregate price level and demand at the given spending growth.
<h3>What is demand?</h3>
Demand is explained as the requirement of a certain product in the market, usually this demand is varied if the prices are changed and the demand also is impacted by the supply.
If the prices are high it is highly likely that the demand of that product will reduce if the product is not a necessity.
If the prices are lower the demand for the product will increase.
Learn more about demand and supply at brainly.com/question/27305760
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Answer:
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