If the Consumer Price Index Was 100 in the Base

question 77

Multiple Choice

If the consumer price index was 100 in the base year and 107 the following year,what was the inflation rate?

• A)107 percent
• B)10.7 percent
• C)7.0 percent
• D)0.7 percent

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Definitions:

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product.

Production Increase

An uptick in the amount of products manufactured by a company over a set period.

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a good or service.

Relevant Range

The extent of activity or volume over which the specific cost assumptions and behaviors are considered valid.