If the Cost of Apparel Increases by 50 Percent, Then

question 84

Multiple Choice

If the cost of apparel increases by 50 percent, then, other things the same, the CPI is likely to increase by about

• A) 0.5 percent.
• B) 2.0 percent.
• C) 3.0 percent.
• D) 11.8 percent.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific period.

Income Statement

A financial document that reports a company's revenues, expenses, and profits over a specific period, showing how the revenues translate into net income.

Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a company at a specific point in time.