If the CPI Was 95 in 1955 and Is 475

question 11

Multiple Choice

If the CPI was 95 in 1955 and is 475 today,then $100 today purchases the same amount of goods and services as

• A)$4.75 purchased in 1955.
• B)$20.00 purchased in 1955.
• C)$95.00 purchased in 1955.
• D)$500 purchased in 1955.

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Definitions:

Percentage of Sales Approach

A financial planning model that estimates changes in balance sheet and income statement items as a direct percentage of changes in sales.

Financial Planning Method

A systematic approach to setting financial goals, developing and implementing plans to achieve those goals, and monitoring progress.

Predicted Sales

Forecasted revenue from goods or services sold over a future period, based on current trends or analyses.

Sales Dilution Approach

A method used in finance to estimate the impact of issuing new shares on the earnings per share by assuming no increase in sales.