Sales Revenue of Firm X Was $10 Million in 2007

question 31

Short Answer

Sales revenue of firm X was $10 million in 2007. In 2010, the same firm reported higher sales revenue of $15 million. The producer price indices for 2007 and 2010 were 130 and 135.
A) Compute the nominal increase in sales revenue between 2007 and 2010.
B) Compute the real increase in sales revenue between 2007 and 2010.

• A) Compute the nominal increase in sales revenue between 2007 and 2010.
• B) Compute the real increase in sales revenue between 2007 and 2010.

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Definitions:

Pretests

Assessments administered before a main test or experiment to establish baseline data or assess prior knowledge or skills.

Mortality Effects

The consequences or impacts, particularly in terms of death rates, resulting from specific causes or factors.

Induce

To lead or move by persuasion or influence, as to some action or state of mind.

Failures

Instances where intended outcomes are not achieved or experiments do not produce expected results.