1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreev551 [17]
2 years ago
5

Government survey takers determine that typical family expenditures each month in the year designated as the base year are as fo

llows:
25 pizzas at $10 each
Rent of apartment, $600 per month
Gasoline and car maintenance, $100
Phone service (basic service plus 10 long-distance calls), $50

In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $700, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40.

a) Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year
Business
1 answer:
Alex17521 [72]2 years ago
7 0

Answer:

  • <u><em>1. CPI in the subsequent year: 1,135</em></u>

<u><em></em></u>

  • <u><em>2. Rate of inflation: 13.5%</em></u>

<u><em></em></u>

Explanation:

<u>1. Calculate the CPI</u>

<em></em>

<em>CPI </em>is the consumer price index.

CPI is created using a basket of goods and services that are typically consumed.

In the given case the typical basket is:

  • 25 pizzas
  • Rent of apartment
  • Gasoline and car maintenance
  • Phone service (basic service plus 10 long-distance calls).

Then to find the CPI for a determined year you multiply each item by its price and then add up all the results.

For the base year, the expenditures per month were:

  • 25 pizzas at $ 10: $10 × 25 = $250
  • Rent of apartment:  $600
  • Gasoline and car maintenance: $100
  • Phone service (basic service plus 10 long-distance calls): $50

Then, the CPI for the base year is:

  • CPI = $250 + $600 + $100 + $50 = $1,000

The year following the base year, the expenditures per month are:

  • 25 pizzas at $ 11 : $11 × 25 = $275
  • Rent of apartment:  $700
  • Gasoline and car maintenance: $120
  • Phone service (basic service plus 10 long-distance calls): $40

Then the CPI for the followng year is:

  • CPI = $275 + $700 + $120 + $40 = $1,135

<u>2. Calculate the rate of inflation</u>

The rate of<em> inflation</em> is defined as the increase of the CPI of the given year with respect ot the base year:

The formula to calculate the rate of inflation is:

  • Inflation = (CPI of the year - CPI of the base year) / (CPF of the base year) × 100

  • Inflation = [ (1,135 - 1,000) / (1,000)]  × 100 = 13.5%

Hence, <em>the rate of inflation for the subsequent year is 13.5%</em>

You might be interested in
The ppi includes the prices of capital goods?
meriva
100 percent true.
there is the answer
7 0
3 years ago
Read 2 more answers
Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as:
attashe74 [19]

Answer: A just took the quiz

Explanation:

5 0
3 years ago
Volkswagen achieved spectacular success in the late 1990s by targeting the nostalgia segment, 35- to 54-year-old baby boomers, w
serg [7]

Answer: Differentiation focus

Explanation:

Marketing focus is not an actual marketing term. Cost leadership strategy's main focus is on the reduction of expenses which in turn, lowers prices of product while targeting a wide array of market segments.

In this question, Volkswagen is not reducing costs, or targeting large market segments. Differentiation strategy” require products to possess significant points of difference in brand image, product offerings, higher quality, advanced technology, and superior service to command a higher price while also targeting a wide array of market segments. For this question, these factors are not explaineded as targeting a broad market segments.

Differentiation focus strategy requires the products to have significant points of difference that is vital to target one or only a few market segments. For this question, Volkswagen uses a specific and unique factor to appeal to a specific group of people. So differentiation focus is the answer.

7 0
3 years ago
Cara writes an e-check on Monday to pay a bill in the simulation. What is the earliest it will be applied to the vendor account?
Andrei [34K]

Based on the length of time an e-check generally takes, the earliest it might be applied to a vendor's account is on <u>Thursday</u>.

<h3>What day will the payment be applied to the vendor's account?</h3>

When an e-check is written, it has to be verified by the bank first. This process takes about 24 to 48 hours.

After verification, the bank can then send the funds to the vendor's account. This part of the transaction can take between 3 to 5 business days from the day the check was issued.

Considering the earliest time is 3 business days, an e-check written on Monday will reach a vendor's account three days later on a Thursday.

Find out more on online payments at brainly.com/question/1109723.

4 0
2 years ago
The limited liability of a stockholder in a closely-held corporation may be challenged successfully if the stockholdera. Underca
lina2011 [118]

Answer:

The correct Option is A

Explanation:

When the limited liability of the stockholder and it is a closely held corporation which might be challenged successfully if the stockholder, undercapitalized the corporation  which means that the corporation does not have enough capital to pay creditors and conduct normal operations of the business and it will be done when it is established or formed.

5 0
3 years ago
Other questions:
  • You are the brand manager for a new line of ready-to-drink coffee line from Pepsi cola. Which opinion leaders or reference group
    7·1 answer
  • A large bureaucratic organization is about to undertake a massive change in the way they do business. these changes will include
    11·1 answer
  • Businesses hold short-term securities for which of the following reasons
    12·1 answer
  • A good _____ for aggression may be the number of times one rat bites another rat.a) correlationb) replicationc) operational defi
    6·1 answer
  • Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year
    13·1 answer
  • -
    6·1 answer
  • Jolly Company wants to have​ 10% of the next​ quarter's sales in units on hand at the end of each quarter. Inventory at the begi
    9·1 answer
  • Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion ma
    13·1 answer
  • Superior has provided the following information for its recent year of operation: The common stock account balance at the beginn
    12·1 answer
  • Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new oppor
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!