The Table Given Below Reports the Price of Soda Over

question 27

Multiple Choice

The table given below reports the price of soda over four consecutive years.
Table 5.7
$\begin{array}{c}\text { Price Data }\\\begin{array}{|c|c|c|}\hline \text { Year } & \text { Base-Year Soda Price } & \text { Current Soda Price } \\\hline 1 \text { (base year) } & \$ 0.30 & \$ 0.30 \\\hline 2 & \$ 0.30 & \$ 0.45 \\\hline 3 & \$ 0.30 & \$ 0.55 \\\hline 4 & \$ 0.30 & \$ 0.65 \\\hline\end{array}\end{array}$
-Refer to Table 5.7. Compute the price index for the base year.

• A) 130
• B) 30
• C) 80
• D) 100
• E) 120

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Definitions:

Base Amount

Base Amount is a reference value or benchmark number from which adjustments or comparisons are made, often used in financial calculations.

Horizontal Analysis

A financial analysis technique that compares historical financial statements line by line to identify trends and changes over time.

Percent Change

A mathematical calculation used to quantify the difference between two values as a percentage of the original value.

Analysis Period Amount

A specific value representing financial or operational data for a defined time frame used for analysis.