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
nordsb [41]
3 years ago
10

Suppose that the residents of Colgateville play golf incessantly. In fact, golf is the only thing they spend their money on. The

y buy golf balls, clubs, and tees. In 2019, they bought 1,000 golf balls for $2.00 each, 100 clubs for $50.00 each, and 500 tees for $0.10 each. In 2020, they bought 1,000 golf balls for $2.50 each, 100 clubs for $75.00 each, and 500 tees for $0.12 each. Using 2010 as the base year, answer the following questions.
a. What was the CPI for 2010?
b. What was the CPI for 2011?
c. What was the inflation rate in 2011?
Business
1 answer:
olchik [2.2K]3 years ago
6 0

Answer:

CPI in 2020 =142.7

CPI in 2019 = 100

Inflation rate = 42.7%

Explanation:

Inflation is the increase in the general price level. Inflation erodes the value of money.

Consumer Price Index(CPI ): This is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.

The increase in the CPI is taken to be the rate of inflation. For example, the CPI rose to 1.09 from 1.00, this implies an inflation rate of 9% within the time period in focus.

The CPI =

The price of a basket of goods in a current  year ÷ Divided by the price of a basket of goods in  a base year

The consumer price

Value of basket of goods in 2019 = (1000× $2)  + (100× $50) + ( 500× $0.10)= 7050

Value of basket of goods in 2020= (1000× $2.50)  + (100× $75) + ( 500× $$0.12)=10,060

CPI in 2020 = 10,060/7050× 100 =142.7

CPI in 2019 = 100

CPI in 2020 =142.7

CPI in 2019 = 100

The inflation rate =(142.7/100-1 ) × 100 = 42.7%

Note , we assume the CPI for 2019 is 100, since we were not provided with data to compute the price of a basket of good in 2018

CPI in 2020 =142.7

CPI in 2019 = 100

Inflation rate = 42.7%

You might be interested in
Team members get to know each other in the:
Andrews [41]

Answer:

Explanation:

Team members get to know each other in the forming stage of group development. It is the period of orientation and when team members become acquainted with each other. However it just the first stage in the long process and people view each other as strangers.

7 0
3 years ago
Read 2 more answers
Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and
Taya2010 [7]

Answer: The correct answer is "D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.".

Explanation: Consumers obviously consider the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Discount and no-frills airlines have less costs to cover so they can offer lower and more affordable prices for consumers. These airlines have been successful because it turns out that consumers value or prefer the lower price rather than the additional services.

3 0
3 years ago
When companies follow the key factors of Corporate Social Responsibility, a __________ usually results, thus __________.
KengaRu [80]

Answer:

positive public image, attracting more customers

Explanation:

7 0
3 years ago
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured
Lemur [1.5K]

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.

Sell for scrap= 65,000 - 50,000= 15,000

Continue processing= 150,000 - 80,000 - 50,000= 20,000

7 0
3 years ago
Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reporte
Mashcka [7]

Answer:

(a) Operating activity

(b) Financing activity

(c) Operating activity

(d) Investing activity

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

So,

(a) Increase in accounts receivable come under the operating activities, and this is to be in a negative amount

(b) Issue of preference shares comes under financing activity, and this is added while computing the financing activities

(c) The depreciation expenses are added in the net income whereas the bond premium amortization is to be deducted from the net income. These both items have come under operating activities

(d) An increase in land value comes under the investing activity.

4 0
3 years ago
Other questions:
  • The British Parliament attempted to regulate trade with the colonies through the:
    7·1 answer
  • Rahim, an accountant for Alamo, Inc., learns of undisclosed company plans to market a new laptop. Rahim buys 1,000 shares of Ala
    6·1 answer
  • Under the Texas penal code
    14·1 answer
  • A transaction should be treated as a(n) ________ when a company has an obligation or right to repurchase an asset for an amount
    14·1 answer
  • Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the
    10·1 answer
  • Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of wh
    5·1 answer
  • Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing
    12·1 answer
  • 15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's
    9·1 answer
  • All of the following are TRUE of a covered call writing strategy EXCEPT: (A) The strategy works best in a bull market. (B) The c
    5·1 answer
  • To start a new business, a sole proprietor must meet a small number of government. Which of the following is not one of them
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!