Answer: Consumer price index (CPI) is weighted price index of basket of good that a consumer purchases each month. CPI is fixed in nature. It is an economic indicator. A rise in CPI indicates consumer inflation rate. The are type of bias that effects the measurement of CPI are: substitution bias, quality bias and outlet bias.
Explanation: Following are the bias:
- <u>Substitution Bias</u>- it arises when prices in the consumer basket increases and consequently low price alternatives or substitutes are opted by the consumer. As we know CPI is fixed-weight price index so the impact is not predicted accurately.
- <u>Quality bias</u>- It arises when any increase in technology increases the quality life of a product. Constant change in the quality of the product again does not reflect in consumer price index.
- <u>Outlet bias</u>- consumer shifts to new places or outlets as per their taste and preferences which is again not well represented by the CPI.
Answer:
They'll consider implementing a low risk/low control strategy such as exporting.
Answer:
e. net worth.
Explanation:
According to my research on different financial assets held by firms, I can say that based on the information provided within the question these are all referred to as the firm's net cash. This is also known as the Common Stockholders' Equity which is formally defined as the company's share capital and retained earnings minus its treasury stock.
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Answer:
Break-even point in units= 14,088 units
Explanation:
Giving the following information:
A company's product sells at $12.30 per unit and has a $5.45 per unit variable cost. The company's total fixed costs are $96,500.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 96,500/ (12.3 - 5.45)
Break-even point in units= 14,088 units
The cost of unloading is $52,000
Explanation:
Cost is the cash interest that a corporation has expended on sales and accounting to manufacture it. Within an organization, costs represent the amount of money spent on manufacturing or developing a good or service. Price requires no benefit premium.
Resource Unloading Equipment $15,000
Fuel $2,000
Operating Labour = (25% × [4 $35,000] = $35,000)
= $35,000
Total = $35,000+$15,000
+$2,000
= $52,000