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nlexa [21]
3 years ago
8

Suppose a basket of goods and services has been selected to calculate the consumer price index. In 2005, the basket of goods cos

t $108.00; in 2006, it cost $135.00; and in 2007, it cost $168.75. Which of the following statements is correct?
a. Using 2005 as the base year, the economy’s inflation rate was higher in 2007 than it was in 2006.
b. If 2007 is the base year, then the CPI is 33.75 in 2006.
c. If the CPI is 156.25 in 2007, then 2005 is the base year.
d. Using 2005 as the base year, the economy’s inflation rate for 2006 was 27 percent.
Business
1 answer:
dlinn [17]3 years ago
8 0

Answer:

c. If the CPI is 156.25 in 2007, then 2005 is the base year.

Explanation:

The formula to compute the consumer price index is shown below:

= (Cost of goods basket in 2007 ÷ Cost of goods basket in 2005) × base year

= ($168.75 ÷ $108) × 100

= 156.25

Since the CPI in 2007 is 156.25 so the base year is 2005.

We simply divide the 2007 basket cost by the 2005 basket cost so that the CPI can come.

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4. You want to take out a fully-amortizing 30-year mortgage. You can afford monthly payments of $600 each. The interest rate is
iragen [17]

Answer: $74569

Explanation:

Based on the information given in the question, the amount that can be borrowed is explained below:

Present value of annuity will e calculated as:

= 600 × [1-(1+0.09/12)^-(12 ×30)] / (0.09/12)

= 600 × [1-(1+0.0075)^-(360)] / 0.0075

= 600 × 1-(1.0075)^-(360)] / 0.0075

= 600 × [1-0.0678860074] / 0.0075

= 600 × 124.282

= 74569

The amount that can be borrowed is $74569

3 0
3 years ago
Deep Water Mining added $411 to retained earnings last year on sales of $24,646. The administrative expenses were $4,370, deprec
ANTONII [103]

Answer:

It is $18,290.24

Explanation:

Profit after Tax (65%) = addition to retained earnings+dividend paid

                                   = $411 +  $285

                                    = $ 696

Profit before Tax = [100/65] * $ 696

                            = $1070.76

Tax (35%)             = 35% * $1070.76

                            = $374.77

Gross Profit = Profit before tax + Total expenses

                    = $1070.76 + [  $4,370+ $103+ $812]

                    = $6355.76

Cost of Sales= $24,646 -$6355.76

                     = $18,290.24 .

Note

-Dividend is paid is paid from profit after tax

6 0
3 years ago
Starbucks CEO Howard Schultz has made sure his employees have health insurance and work in a positive environment. He could best
Leya [2.2K]

Answer: Servant leader

Explanation: Servant leader is that leader whose main goal is to serve his followers and subordinates.  All the actions that a servant leader takes is to make sure that the needs of his followers are taken care of.

This theory is sometimes used in management also we the perception that employees are the most important asset and if they are provided with proper facility their productivity will be at full, leading to development of organization.

In the given case, Starbucks CEO is taking utmost care of his employees. Hence, it is clearly a Servant leader example.

3 0
3 years ago
Two main reasons a company will market its products are to _____. (Select all that apply)
Leni [432]

Answer:

3. consumers know what is available

Explanation:

3 0
3 years ago
Which of the following would be most likely to use process costing? a.lawn fertilizer manufacturer b.custom furniture manufactur
Novosadov [1.4K]

Answer:

The correct answer is letter "A": lawn fertilizer manufacturer.

Explanation:

Process costing is a type of costing approach used by companies to identify expenses for individual units produced. This method is useful for manufacturers in charge of mass production where all the units are almost the same or equal. Thus, <em>a lawn manufacturer could use the process costing system</em> because the equipment produced in that industry are almost equal and tend to be manufactured in large quantities.

5 0
3 years ago
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