In economics, the Fisher equation is used to determine the
relationship of the nominal interest rate and the real interest rate. This
equation takes into account the effect of inflation. Mathematically this is
expressed as:
Real rate = 
-1
The values given are:
Nominal rate= 10% =
0.1
Inflation=5%=0.05
Substituting known
values and by calculation:
<span>Real rate=0.0476 =
4.76%</span>
Being smart and being decisive.
Answer:
Purchases= 696,000 pounds
Explanation:
Giving the following information:
Production= 222,000 units.
To make one unit of a finished product, three pounds of direct material Z are required.
<u>To calculate the purchases of direct material, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 222,000*3 + 420,000 - 390,000
Purchases= 696,000 pounds
Answer: trade shows
Explanation:
In marketing mix, the place is simply referred to as the process of movement if goods and services from the producer to the prospective consumers or consumers.
The place also refers to how ones good or service is bought and the place where it is being sold. The movement could be through intermediaries like distributors, the wholesalers, retailers etc.
In the above, the place will be the trade shows.
Answer:
$71.5
Explanation:
Inventory forecast is a way of predicting the volume of inventory required to fulfill future orders based on the existing production capacity and other plans relating to production
equation for forecasting inventory = $22 + 0.125 sales
Current sales = $300 million
Annual sales growth rate =32%
sales for next year = 300 + (300*32%)
300 + 96= $396 million
Applying the equation
Inventory = $22 + (0.125*396)
$22 + $49.5 = $71.5 million
