The answer is<u> "B) the rate of inflation".</u>
Inflation alludes to a general increment in the Consumer Price Index (CPI), which is a weighted normal of costs for various products. The arrangement of products that make up the record relies upon which are viewed as illustrative of a typical utilization crate. Therefore, contingent upon the nation and the utilization propensities for most of the populace, the file will include diverse merchandise. A few merchandise may record a drop in costs, though others may build, along these lines the general estimation of the CPI will rely upon the heaviness of every one of the products as for the entire bin. Yearly expansion, alludes to the percent change of the CPI contrasted with that same month of the earlier year.
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Answer:
c. decrease by $10,000 per year.
Explanation:
The contributing margin of a business is sales revenue less the variable cost to produce the product
Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.
In this scenario if the department is discounted the fixed expense will reduce by $40,000
This implies that the net income will increase by $40,000 if the department is discontinued.
If the department is discontinued income from the department will reduce by $50,000. That is -$50,000
Net income= -50,000 + 40,000= -$10,000
It’s c I had this problem a week ago
