The Consumer Price Index Is 132 in 2004 and 112

question 86

Multiple Choice

The consumer price index is 132 in 2004 and 112 in 2003 when the base year is 1997.The 2004 annual inflation rate,using 2003 as a base year,is

• A)17.8 percent.
• B)20 percent.
• C)12 percent.
• D)unknown,as there is not sufficient information.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Depreciation Expense

Apportioning the value of a concrete asset throughout its operational life.

Sales Price

The amount of money for which a product or service is sold to customers, not necessarily reflecting the cost of production or provision.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.