If Sales Totaled $200,000 for the Current Year (10,000 Units

question 108

Multiple Choice

If sales totaled $200,000 for the current year (10,000 units at $20 each) and planned sales totaled $212,500 (12,500 units at $17 each) ,the effect of the unit price factor on the change in sales is a:

• A) $30,000 increase
• B) $12,500 increase
• C) $7,500 increase
• D) $30,000 decrease

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Definitions:

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Keynes

Refers to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP in two successive quarters.