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
SVEN [57.7K]
3 years ago
7

The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52

.3, and the CPI in 2005 was 191.3. Refer to Scenario 24-1. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost: a) $0.27, so tennis balls were cheaper in 1975.b) $3.66, so tennis balls were cheaper in 1975.c) $3.66, so tennis balls were cheaper in 2005.d) $0.27, so tennis balls were cheaper in 2005.
Business
2 answers:
nika2105 [10]3 years ago
8 0

Answer:

a) $0.27, so tennis balls were cheaper in 1975.

Explanation:

formula for real price is

Real Price in year t = Nominal Price in year t × Adjustment factor

Adjustment factor is measured using the CPI values.

Real Price in year t = Nominal Price in year t × <u>CPI in base year</u>

                                                                             CPI in year t

 Real Price in year 2005 = Nominal Price in year 2005 × <u>CPI in 1975</u>

                                                                                              CPI in 2005

                     = 1 × <u>52.3</u>

                             191.3

                  = 0.27 = $0.27

The real price of tennis balls in 1975 was $0.10

Therefore, tennis balls were cheaper in 1975.

option a is correct

erma4kov [3.2K]3 years ago
5 0

Answer:

a) $0.27, so tennis balls were cheaper in 1975.

Explanation:

This is a question that has to do with the time value of money & includes accounting for inflation.

Let's list out the given parameters us:

Nominal price (1975) = $0.10, CPI (1975) = 52.3, Nominal price (2005) = $1.00, CPI (2005) = 191.3

We want to know how much the tennis ball cost in 1975 dollars, hence, we make 1975 our base year. The calculation follows below:

Real price (2005) = Nominal price (2005) * CPI (1975) ÷ CPI (2005)

Real price (2005) = 1.00 * 52.3 ÷ 191.3

Real price (2005) = $0.2734

Real price (2005) = $0.27

The calculation reveals to us that a 2005 tennis ball cost $0.27 (in 1975 dollars). Which means that a tennis ball in 2005 is more costly than it did in 1975.

Hence, option A is the correct answer

You might be interested in
________ is a financial institution owned by investors that focuses on business customers, providing bank accounts along with sp
Virty [35]

Answer:

Commercial bank.

Explanation:

A commercial bank is a financial institution that provides financial services to the public such as offering loan services, accepting deposits, foreign exchange, providing bank accounts. They encourage savings and are good sources of finance to businesses and industry.

3 0
3 years ago
The following information is available for the pension plan of Concord Company for the year 2020.
anzhelika [568]

Answer:

$93,900

Explanation:

Computation for pension expense for the year 2020.

PENSION EXPENSE

Service cost $54,700

Interest cost $45,200

($452,000 * 0.10)

Less Actual return ($13,800)

Amortization of PSC $7,800

Pension expense $93,900

Therefore the pension expense for the year 2020 is $93,900

4 0
3 years ago
For the built-in loss limitation to apply, the property must have been acquired by the corporation as part of a plan whose princ
adoni [48]

Answer:

Yes, it is true that for the built-in loss limitation to apply, the property must have been acquired by the corporation as part of a plan whose principal purpose was to recognize a loss on the property by the liquidating corporation. That is why A net built in loss has to be determined first.

Explanation:

Limitation is equal to the value of the stock of the loss borne by corporation immediately before the ownership changes.

The basis limitation rule only applies when there is a net built-in loss.

Built-in losses are the excess of the adjusted basis for U.S. federal income tax of any Contributed Property over its Agreed Value as of the time of contribution treated as deductions or losses in the year recognized.

A net built-in loss occurs when the aggregate adjusted basis of the property exceeds its fair market value.

5 0
2 years ago
A product's package, guarantees, mass-media advertising for the product, direct marketing for the product, and the selection of
jek_recluse [69]

Answer:

The correct answer is D) marketing inputs.

Explanation:

Marketing inputs: Marketing activities in the company are a direct attempt to reach, inform and persuade consumers to buy and use their products.

Input is a term applied in the field more than all economic and marketing, but basically it can be said that an input is any element that represents a fraction in the development of a product, understood as a product, everything that is produced for a given end. An input is all that material used in the manufacture of something larger, usually we associate it with the basic diet, this is because the ingredient of a food, however edible, individually, does not represent a complete food bolus, with a Standard regulation of each of its components, so it is considered as an input, as part of a whole.

8 0
2 years ago
Pathology studies the<br> a<br> and effect of disease.
insens350 [35]

Answer:

Causes and effects

Explanation:

7 0
3 years ago
Other questions:
  • Northern Company has bonds with an amortized cost of $600,000. At the end of the first reporting period, the bonds had a fair va
    12·1 answer
  • Assume net income was $210,000, depreciation expense was $6,200, accounts receivable decreased by $11,500, and accounts payable
    8·1 answer
  • A client diagnose with scabies has been prescribed lindane lotion. What is the recommended method of administration of this medi
    5·1 answer
  • You would most likely find __ in a formal workplace
    15·1 answer
  • Phoenix Pump and Filter projects that the cost of steel bodies for Model R910 valves will increase by $2.50 every 3 months. If t
    8·1 answer
  • If Sue, owner of Camp Bow Wow in Boulder, Colorado, says Heidi Granahl, CEO and founder of Camp Bow Wow, is a leader who establi
    8·1 answer
  • Which of these occupations is INCORRECTLY paired with the level of education required? A) Welder→ Bachelor's degree B) Teacher→
    11·2 answers
  • True or False: Keeping his maximum willingness to pay for an antique car in mind, Manuel will not buy the antique car because it
    8·1 answer
  • Why would police file an affidavit of probable cause before a person is
    9·2 answers
  • At a sale of polarizing sunglasses, there is a half-price special on some glasses with lenses that have a horizontal polarizatio
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!