The Following Linear Trend Equation Was Developed for Annual Sales

question 7

Multiple Choice

The following linear trend equation was developed for annual sales from 2005 to 2009,with 2005 as the base year. = 500 + 60t (in thousand $) . What are the estimated sales for 2010 (in thousand $) ?

• A)$500
• B)$860
• C)$1,040
• D)$1,100

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Definitions:

Market Value

The current price at which an asset, or service can be bought or sold in a marketplace.

Interest Revenue

Income earned from lending money or depositing funds in interest-bearing accounts.

Investor Ownership

The possession of equity in a company, represented by stocks, by investors.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without controlling or jointly controlling the entity.