Write the Formula for Finding the Rate of Inflation in 2011

question 207

Short Answer

Write the formula for finding the rate of inflation in 2011 if you have only the CPI for the years 2010, 2011, and 2012.

---

Definitions:

Break-even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.

Sales Percentage

A metric that shows what portion of a company's total sales is made up of a particular product or service.

Degree of Operating Leverage

A metric that measures a company's sensitivity of operating income to its sales, indicating the impact of fixed and variable costs.

Contribution Format Income Statement

An income statement that separates fixed and variable costs to highlight the contribution margin.