Henri Earned a Salary of $50,000 in 2001 and $70,000

question 15

Multiple Choice

Henri earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 in 2001 and 265.5 in 2006. Henri's 2001 salary in 2006 dollars is

• A)$25,000.00.
• B)$33,333.33.
• C)$44,250.00
• D)$75,000.00.

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Definitions:

F.O.B. Shipping Point

Purchaser pays or is responsible for the shipping costs from seller’s shipping point to purchaser’s location.

Discount Period

The established period after a sale during which a customer can pay the invoice at a reduced rate, incentivizing quicker payments and enhancing cash flow.

Merchandise Inventory

Goods that a company holds with the intent of selling them to customers.

Accounts Payable

Liabilities or amounts owed by a business to creditors for purchases or services rendered that haven't been paid for yet.