Sean McCarthy Earns $20,000 a Year; John Nowak, $35,000

question 28

Multiple Choice

Sean McCarthy earns $20,000 a year; John Nowak, $35,000. What is John's income as an index using Sean's income as the base?

• A) 157.1
• B) 75.0
• C) 100.0
• D) 57.1
• E) 175.0

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Definitions:

Inventory Cost Flow

The process by which costs associated with inventory are accounted for, impacting how cost of goods sold and ending inventory are calculated.

Gross Profit

The difference between total revenue and the cost of goods sold, indicating the fundamental profitability of a company's core activities.

Rising Prices

A situation in which the general level of prices for goods and services in an economy increases over a period of time.

Market Cost

The current price at which goods, assets, or services can be bought or sold in the marketplace.