Net working capital is defined as current liabilities minus current assets.
This statement is False.
What is meant by net working capital?
Working Capital = Current Assets - Current Liabilities
Current Assets
Current assets are the economic benefits that the company expects to receive within the next 12 months. The company has the right to receive the financial benefit, and calculating working capital.
Current Liabilities
Current liabilities are simply all debts a company owes or will owe within the next twelve months.
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managers of profit centers are usually given a lot of discretion because a. the company can never judge their performance b. they rarely ever do a good job c. they always do an excellent job d. the company has a clear perform
Managers of profit centers are usually given a lot of discretion because it is relatively easy to tie management pay to division performance. Thus, the correct option is D). the company has a clear perform.
What are the responsibilities of a manager?Manager is a person who is responsible for controlling or supervising an organization or group of staff.
A manager has to perform number of responsibilities for the attainment of the objectives of a company. These responsibilities may include managing staff, planning and evaluating department activities etc.
Basically, manager is a professional who manages a team of employees.
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labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
The reason unemployment tend to change when the level of output changes is because: B) Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
What is an unemployment rate?An unemployment rate can be defined as a measure or percentage of the total labor force in a country (economy), who are unemployed but are actively seeking to be gainfully employed by the employers of labor.
The four factors of production.In Economics, there are four (4) factors of production and these include the following:
LandCapital resourcesEntrepreneurshipLaborIn conclusion, the reason unemployment usually change when the level of output (production) changes is simply because labor is considered as an input in the production process, and if output falls, employers would certainly need only fewer workers (employees) to make it, so the level of employment falls.
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Complete Question:
Why does unemployment tend to change when the level of output changes?
A)Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output.
B)Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
C)When output rises, persons are more interested in buying, and will work more to earn the income to buy things.
D)Persons face the option of buying or working, so that when they do more of one, the other necessarily falls.
E)When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment.
factors that affect the weighted average cost of capital include all of the following except: market interest rates. the firm's debt/equity mix. the firm's business risk. market risk aversion. the firm's income tax rate.
When the Fed hikes interest rates, the risk-free rate immediately increases, which raises the company's WACC. Other external factors that can affect WACC include corporate tax rates, economic conditions, and market conditions.
What is tax rates?An individual or business gets taxed at a certain percentage, which is called a tax rate. The United States employs a progressive tax rate system, where the amount of tax levied rises as taxable income for an individual or company increases. This system is used by both the federal government and several states. The amount of money collected from taxpayers with higher incomes is larger when there is a progressive tax rate.
An individual or business gets taxed at a certain percentage, which is called a tax rate.
In the United States, taxes are levied at a progressive rate, which means that the more money you earn, the higher the tax rate will be.
Due to the marginal tax rate structure used in the United States, taxpayers actually pay a lower effective tax rate.
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a perfectly market is one in which well-informed, price-taking buyers and sellers easily trade a standardized good or service.
A perfect market is one in which well-informed, charge-taking buyers and dealers easily trade a standardized proper or carrier or which any units of it have the identical capabilities and are interchangeable. bear in mind a market this is in equilibrium.
A good is a tangible or physical product that a person will buy, tangible which means something you may contact, and service is while you pay for talent. A carrier is some thing intangible, which cannot be bodily touched or stored.
consumers and sellers are fee-takers. this option follows from the assumption of an identical appropriate and many customers and dealers so no customer or supplier can influence the fee. No barriers to entry, so in the lengthy-run firms can freely input or exit the market on every occasion corporations are figuring out profits or losses.
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100 pts please help me :(
Give your opinion about college loan forgiveness plan recently announced by President Biden? Written opinion MUST BE your original thought (not copied/plagiarized).
The college loan forgiveness plan that was recently announced by President Biden was a good plan that will help to alleviate those who are unable to repay their loans.
What is a college loan forgiveness plan?This refers to an additional features added to a loan repayment to help those who are less privileged. The college loan forgiveness plan is only attributed to the College loan which were used to pay school fee, hostel fee and other expenses during the course of learning.
In United States, the current students and borrowers who have federally held undergraduate, graduate that were distributed on or before June 30 are eligible for the forgiveness plan.
In order to qualify for Biden's student loan forgiveness plan, borrowers must earn under $125,000 in annual income or $250,000 if they are married. Therefore, the college loan forgiveness plan that was recently announced by President Biden was a good plan that will help to alleviate those who are unable to repay their loans.
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Windswept, incorporated, has 250 million shares of stock outstanding. its price-earnings ratio for 2021 is 15. what is the market price per share of stock?
The market price per share of stock is $45.00
What is the market price per share of stock?
The market price per share of stock for Windswept, incorporated can be determined based on its price-earnings ratio and the earnings per share since the price-earnings means the market price divided by earnings per share
price-earnings ratio= market price per share of stock/earnings per share
price-earnings ratio=15
market price per share of stock=unknown(assume is MP)
earnings per share=net income/stock outstanding
net income=$751 million
stock outstanding=250 million
earnings per share=$751 million/250 million
earnings per share=$3.00
15=MP/$3.00
MP=15*$3.00
MP=market price per share of stock=$45.00
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Full question:
Use the following information to answer this question.
Windswept, Inc. 2021 Income Statement
($ in millions)
Net sales $ 8,750
Cost of goods sold 7,300
Depreciation 305
Earnings before interest and taxes $ 1,145
Interest paid 72
Taxable income $ 1,073
Taxes 322
Net income $ 751
Windswept, Inc. 2016 and 2017 Balance Sheets
($ in millions)
2016 2017
Cash $ 150 $ 165
Accounts payable $ 1,190 $ 1,367
Accounts rec. 920 730
Long-term debt 950 1,128
Inventory 1,520 1,530 Common stock 3,210 2,900
Total $ 2,590 $ 2,425 Retained earnings 460 710
Net fixed assets 3,220 3,680
Total assets $ 5,810 $ 6,105 Total liab. & equity $ 5,810 $ 6,105
Windswept, Inc., has 250 million shares of stock outstanding. Its price-earnings ratio for 2021 is 15. What is the market price per share of stock?
drag the items to classify each event as movement along the demand curve or a demand curve shift. the good is fertilizer for flowering plants.
Movement Along Demand Curve: The fertilizer becomes cheaper; the fertilizer becomes more expensive.
Factors That cause shift in demand curve: Chicken manure, a substitute for fertilizer, becomes more expensive, Roses become cheaper.
A demand curve is a graphical depiction of the correlation between commodity and their price, and the way the graph alters as their values change.
Movement along the Demand Curve is caused by commodity price fluctuations. This has an additional impact on the quantity demanded. All other variables remain static. In this case, the graph keeps moving along the Y-axis whereas the price is projected against it. The other axis, moreover, stays unchanged. So, in this scenario, a significantly raise in price lessens Demand, while a decline in price increases Demand.
A shift in the demand curve takes place if any other factor besides of price fluctuate. It may be owing to the quantity, income level, or a variety of other variables underlying the Demand Curve. Also, the price can alter as a result of this. This causes a shift to the left or right in the Demand Curve.
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All accounts that appear in the balance sheet, including retained earnings, are permanent accounts, and we carry forward their balances from period to period. True or false?.
Answer:
True
Explanation:
Can u please mark me :)
classify each cost as being either variable or fixed with respect to the number of units produced and sold. also classify each cost as either a period or a product cost.
Linearly correlated to production level is the variation in variable costs. However, variable costs are constant across when expressed on a per-unit basis.
The effort to categorize costs as constant or variable is to be able to control costs, but he can still think of this fixed cost on a per-unit basis. Revenue per unit / (Variable costs per unit / Fixed costs).
The amount of products produced as well as other factors affect unit costs. Regardless of the manufacturing or sales level, fixed costs still exist. Costs known as "variables" are expenses that alter as a company's output of a good or service changes.
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placed an order for office supplies costing $2,000. supplier intends to deliver later in the month. purchased equipment that cost $30,000; paid $10,000 cash and signed a promissory note to pay $20,000 in one month. negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company’s checking account. hired a new finance manager on the last day of the month. received an investment of $10,000 cash from the company’s owners in exchange for issuing common shares. supplies [ordered in (a)] were received, along with a bill for $2,000.
The indication of the amount, accounts, and directions of effects of the transaction are given below for all the transactions on the radio station's accounting equation which include paying $10,000 cash and signing a promissory note to pay $20,000 in one month.
The accounts along with the amount and the direction of effect of the transactions is as follows:
No journal entry requiredDr: Equipment $30,00 Cr: Cash $10,000 & Note Payable (short term) $20,000Dr: Cash $5,000 Cr: Note Payable (short-term) $5,000No journal entry requiredDr: Cash $10,000 Cr: Contributed Capital $10,000Dr: Supplies $2,000 Cr: Accounts Payable $2,000Hence, the amount, accounts, and directions of the effects of the transaction are given above.
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project x has an initial cost of $20,000 and a cash inflow of $25,000 in year 3. project y costs $40,700 and has cash flows of $12,000, $25,000, and $10,000 in years 1 to 3, respectively. the discount rate is 6 percent and the projects are mutually exclusive. based on the individual project's irrs you should accept project ; based on npv you should accept project ; the final decision should be to accept project . multiple choice y; y; y y; x; x x; y; y x; x; x y; x: y
Project X has a $20,000 start-up cost and a $25,000 cash inflow in year 3. Project Y has a $40,700 cost and generates cash flows of $12,000, $25,000, and $10,000 over the course of its first three years. The projects are mutually exclusive, and the discount rate is 6%. You should approve the project in the end based on the irrs and npv of each individual project as well as your own assessment of those factors. X;Y:Y.
Start-up costs are the costs a business spent or incurred to establish an active trade or business, or to research establishing or acquiring an active trade or business. Start-up costs are sums paid or expended in connection with a current profitable activity that is intended to generate money prior to the activity becoming a fully operational trade or business. Equipment, incorporation fees, insurance, wages, and taxes are just a few of the startup costs. Although startup costs will differ depending on your business's industry and type, an expense for one firm might not be applicable to another. It helps you effectively launch your firm and maintain profitability after your doors are open to understand your expenses and how you will manage them.
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you've done research on the competition in the area, and you worked for a sandwich franchise during college, so you're not entirely unfamiliar with the business. but you also know you've got a lot to learn, and you want to make the right decisions and make your business a success.
If you want to make your business success, write a business plan.
A business plan is a comprehensive plan that outlines a strategic mission and how they intend to achieve them. A business plan is a written roadmap that outlines the company's marketing, financial, and operational objectives. Startups and established firms both employ business plans.A business plan is a formal written document that includes a company's goals, strategies for achieving those goals, and time period for accomplishing those goals.Business plans are composed of five basic pieces of information. They include a business overview, an analysis of your competitive environment, a marketing plan, a section on human resources (people requirements), and critical financial information.An executive summary, product and service sections, marketing strategy and analysis, financial planning, and a budget should all be included in a good business plan.Thus, this is how you should write a business plan, if you want to make your business successful.
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Over the past 30 years technological advances have reduced the cost of computer chips. how do you think this hass affected the market for omputers?
A product's demand is influenced by the cost of its alternatives and complements.
Demand for a product and the cost of an alternative directly correlate. An inverse relationship exists between a product's demand and the cost of its replacement.
In economics, the relationship between the quantity of a good or service that producers want to sell at different prices and the quantity that consumers want to buy is known as supply and demand.
It serves as the primary model for determining prices in economic theory. The interaction of supply and demand in a market determines the price of a good.
The cost of manufacturing computer chips will decrease if chips are less expensive. Both the supply of computers and the number of computers purchased will therefore increase.
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In alphabetical filing, which name would appear first?
a. pipeline coastal group
b. pip pipes and plumbing services
c. pipe and drains co.
d. pipe fitters & plumbers services
In alphabetical filing, b. pip pipes and plumbing services
A service is an " act or use for which a patron, company, or government is inclined to pay." Examples consist of work carried out by barbers, medical doctors, lawyers, mechanics, banks, insurance groups, and so on. Public services are those that society as a whole can pay for.
Offerings are intangible monetary sports that require private interaction between the patron and the provider provider on the time of transport of the offerings. services need not contain any form of production or sale of products and are in particular supplied so one can satisfy individuals' wishes.
Services are varied in 3 agencies; business offerings, social services and personal services.
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coo, scott lawton, discusses barcelona’s philosophy on allowing restaurant managers to make their own decisions. they hire and train managers that they believe have the "creativity and brain power" to be successful. scott is performing a(n
Scott Lawton discusses Barcelona's philosophy of allowing restaurant managers to make their own decisions. they hire and train managers that they believe have the "creativity and brain power" to be successful. Scott is performing a(n) Scott is performing an interpersonal role.
This is further explained below.
What is an interpersonal role.?Generally, In this instance, Scott is taking on the role of a leader, and he is selecting competent managers and then training them to ensure that they do their jobs in the most effective way possible.
Therefore, we might say that he is playing an interpersonal role.
In conclusion, The connections that a manager has to have with other people are referred to as their interpersonal roles. Figurehead, leader, and liaison are the three different jobs that fall under this category.
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Organizations use ___________________ hold to preserve all forms of relevant information when litigation is reasonably anticipated.
Legal hold is a procedure used during data capture to preserve all relevant information in its various forms when litigation is reasonably anticipated.
What is litigation?Bringing a matter before a court of law is known as litigation. In the event that the parties to a disagreement are unable to come to an amicable resolution, they will each present their respective arguments to the court for decision. It is a general term that refers to a drawn-out and occasionally challenging process. The steps in the litigation procedure will be broken down in this article. The standing orders of judges and the regional regulations of each court serve as supplements to these. In the event that a dispute cannot be resolved amicably, the parties will each present their separate cases to the court for judgement.
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Many company employees work from home on a full-time basis. what technology do they commonly use to communicate securely with the organization's network?
Those who do get technology with mild-to-moderate COVID-19 will likely remain infectious no longer than 10 days after symptoms begin. Individuals with severe-to-critical illness stemming from a COVID infection likely aren't infectious 20 days after symptoms first began.
Technology is the application of scientific knowledge to the practical aims of human life or, as it is sometimes phrased, to the change and manipulation of the human environment.7 days.
The definition of technology is the application of scientific knowledge for practical purposes or applications. The technology uses scientific principles and applies them to change the environment in which humans live. Technology can also use scientific principles to advance industry or other human constructions.
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in the context of using information technologies for a competitive advantage, which statement is true of a bottom-line strategy?
The correct answer is - Information technology focuses on generating new revenue by offering new products and services which gives competitive advantage.
Competitive advantage refers to factors that enable a company to produce goods or services better or at a lower cost than competitors. These factors enable the productive entity to generate more sales or higher margins than its competitors in the market. A variety of factors, including cost structure, branding, product quality, distribution network, intellectual property, and customer service, are attributed to competitive advantages.
how Information technology helps in gaining competitive advantage-
Technology affects value activities directly or allows businesses to gain a competitive advantage by capitalizing on changes in competitive scope.lowering costs. increasing differentiation.Changing the competitive landscape.Determine the level of information intensity.Determine the role of information technology in the structure of the industry.Learn more about competitive advantage here:
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caleb is not a professional gambler, but he does like to play slot machines and purchase lottery tickets from time to time. during the year, he won $2,000 while playing slots at lucky casino. caleb kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings, his losses at the casino totaled $2,350. he also has records showing he spent an additional $200 for lottery tickets without winning anything. if caleb itemizes his deductions, how much can he claim for gambling losses on schedule a, itemized deductions?
If he won $2,000 while playing slots at lucky casino and kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings. The amount he can claim for gambling losses on schedule a, itemized deductions is: $2,000.
Itemized deductionA person can tend to deduct their gambling losses when they itemize their deductions on Schedule A and as well kept a record of their winnings and losses.
Since caleb kept all record of his winnings and losses which in turn means that the amount of losses that can be deducted should not be higher than the amount of gambling winning he reported.
This means that caleb yearly losses will be deductible only up to the amount of his winnings which is $2,000.
Therefore If he won $2,000 while playing slots at lucky casino and kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings. The amount he can claim for gambling losses on schedule a, itemized deductions is: $2,000.
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A type of process that creates one-of-a-kind products is?
Option (b) job shop and option (b) project is the right answer.
The manufacturing processes that produce one-of-a-kind things are job shops and projects.
What are job shops?Job shops are primarily modest manufacturing systems that manage job production, which includes small- to medium-sized customer orders or batch jobs as well as custom/bespoke or semi-custom/bespoke manufacturing processes. When a job shop completes a job, they usually move on to another.
Define project.A project is a business venture intended to create distinctive but related items. It benefits from standard manufacturing specifications (and thus efficiency), while enabling customization into "unique" combinations. Unusual orders can be handled similarly to a project.
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The complete question is: " A type of process that creates one-of-a-kind products is: (Choose all that apply)
(a) repetitive processing
(b) job shop
(c) project
(d) continuous processing "
According to mcclelland, the extent to which people have strong desires to perform challenging tasks and to meet personal standards of excellence is known as _____.
According to McClelland, the extent to which people have strong desires to perform challenging tasks and to meet personal standards of excellence is known as the need for achievement. According to McClelland's Human Motivation Theory, each person is driven by one of three needs: the need for power, affiliation, or achievement.
We acquire these motivators through our culture and life experiences; they are not inherently present in us. Achievers enjoy finding solutions and achievement objectives. Need theory, commonly referred to as the "Three Wants Theory," was put out by psychologist David McClelland as a motivational model that aims to explain how people's actions in a managerial setting.
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suppose a new restaurant, john's burgers, offers better tasting food that is custom-made, takes less time to prepare, and costs less than what mcdonald's offers.
John's Burgers Pareto dominates to that of mcdonald's offers.
And therefore, customers are more satisfied by John's Burgers.
How to dominate in business?Securities created to produce profits are known as investment assets in the financial markets. They are organized into groups known as asset classes, which can be further broken down into stocks, bonds, commodities, and currencies.
By mixing various investment assets in one portfolio, or a combination of investments held, an investor is reducing risk exposure because each asset class has a tendency to respond differently to the same piece of economic news.
Investment assets can be divided into groups based on specific features in addition to being grouped by general financial components. Examples of this would include equities that trade in related industries, such the energy sector.
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Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is.
If a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is: 1.6 bushels of squash.
Opportunity costUsing this formula
Opportunity cost= bushels of squash/bushels of tomatoes
Let plug in the formula
Opportunity cost=8/5
Opportunity cost=1.6 bushels of squash
Therefore If a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is: 1.6 bushels of squash.
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the acmeville metropolitan bus service currently charges $0.99 for an all-day ticket and is used by an average of 623 riders a day. the bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. they must, therefore, find a way to increase revenues. the bus company is considering increasing the ticket price to $1.21 . the marketing department's studies indicate this price increase would reduce usage to 473 riders per day.
P1 is 0.99
P2 is 1.21
Q1 is 623
Q2 is 473
[tex]P E D=\frac{(473-623) /[(473+623) / 2]}{(1.21-0.99) /[(1.21+0.99) / 2]}=-1.37[/tex]
Therefore, the PED is 1.37, which means it is elastic and sales decrease when price increases.
What is PED
Price elasticity of demand is the percentage change in quantity demanded of a good or service divided by the percentage change in price. Price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. Elasticity can be classified into five broad categories: fully elastic, elastic, fully inelastic, inelastic, and unitary. Elasticity of supply or demand is one whose elasticity is greater than 1 and exhibits high responsiveness to price changes. Inelastic demand or supply is one with elasticity less than 1, indicating a poor response to price changes. Unit elastics describe the proportional responsiveness of demand or supply.
PED formula
[tex]P E D=\frac{\left(Q_{2}-Q_{1}\right) /\left[\left(Q_{2}+Q_{1}\right) / 2\right]}{\left(P_{2}-P_{1}\right) /\left[\left(P_{2}+P_{1}\right) / 2\right]}[/tex]
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The marketing mix element that describes what a buyer exchanges with a seller in order to obtain a product is known as?
The marketing mix element that describes what a buyer exchanges with a seller in order to obtain a product is known as Globalization
The marketing mix is what?The term "marketing mix" refers to a group of procedures, or techniques, that a business use to sell its goods or services. Price, Product, Promotion, and Place are the 4Ps that make up a conventional marketing mix.
How does the global marketing mix work?An increasingly interdependent and integrated global economy is combined with the promotion and sale of goods and services through global marketing. It renders the businesses stateless and without boundaries.The 4Ps of marketing—product, pricing, place and promotion—present numerous difficulties when used in international marketing. We look at each P separately to try to identify any problems that may be associated with it.The product and service mix is one of the key components for today's global marketer. It is astounding how many different products and services are in demand in the age of globalization.To know more about Globalization visit:
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Long margin account market value: $80,000 debit balance: $30,000 if the customer buys $80,000 of listed stocks and sells $20,000 of listed stocks on the same day, the customer must deposit?
Long margin account market value, The customer must deposit C. $20,000.
Long margin account market value = $80,000
debit balance = $30,000
customer buys = $80,000 of listed stocks
sells $20,000 of listed stocks on the same day
Hence, the customer must deposit C. $20,000.
Long margin way borrowing money from a brokerage company that allows you to carry out trades. when trading on margin, investors first deposit coins that then serves as collateral for the loan after which pay ongoing interest bills on the money they borrow.
Long not unusual stock on margin is a play that can be run across all time frames. however, it has a tendency to be run as a shorter-term change, as it involves paying hobby on money borrowed from your broker.
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Disclaimer:- your question is incomplete, please see below for the complete question.
Long Margin Account
Market Value: $80,000
Debit Balance: $30,000
If the customer buys $80,000 of listed stocks and sells $20,000 of listed stocks on the same day, the customer must deposit:
A. 0
B. $10,000
C. $20,000
D. $30,000
In your opinion, what has been the overall effect of capitalism (free market enterprise) on american democracy?
The two ideas conflict in numerous ways. Alternatively, a minor quarrel.
As a result, democracy has frequently suffered as free market capitalism has grown throughout history. Free market principles have decreased while collective Democratic values have increased.
An economic system called free market capitalism recognizes that some people will succeed and others won't. Bad ideas will be ignored and dismissed, while those with creativity and business savvy will be recognized.
How is the American democratic republic characterized?
The American democratic republic is characterized by its people coming together to address shared issues while reserving the right to private property and notions of liberty.
The New Deal is typically interpreted as a retreat from the free market and an expansion of American democracy as a whole. Right now, robust collective Democracy and free market capitalism are engaged in conflict. Which idea will win will be determined only with time.
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Which event(s) helped cause a lull in the growth of the book publishing industry?
The book publishing industry's expansion experienced a halt following World War I.
How did book publishing begin in the world?In what is typically regarded as an independent invention, Johannes Gutenberg introduced moveable type to Europe in 1450. He also made advancements in the method of type casting using a matrix and a hand mould. With time, this technology helped books become more widely available and less expensive to print.
What changes has the publishing sector undergone?Expanding selection of titles; developing format.
The number of books on the market increased as a result of advancements in digital technology, distribution improvements, and the emergence of self-publishing, but these changes also significantly increased the number of books that were traditionally published.
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The competitive dimension that deals with getting the product to the customer when promised is?
The competitive dimension that deals with getting the product to the customer when promised are delivery reliability.
What are the dimensions of competitive advantage?In benefit of industry, the dimension of competitive advantage is more straightforward which comprises of cost, adaptability, delivery, and quality. Competitive advantage must be continually upgraded in arrange to the bargaining value of company can be sustainable , it is commonly called economical competition advantage.
The competitive dimensions of operations are cost, item quality and reliability, conveyance speed, delivery reliability, adapting with request alter, adaptability, and unused item presentation speed.
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Dewey earned a salary of $75,000 in 2001 and $95,000 in 2006. the consumer price index was 177 in 2001 and 266 in 2006. dewey's 2001 salary in 2006 dollars is:_________
Dewey's 2001 salary in 2006 dollars is: $112,711.86
We are given the salary of $75,000 in 2001 and $95,000 in 2006. Also, we are given the consumer price index in 2001 and 2006 as 177 and 266 respectively.
Consumer Price Index is the index used by financial markets and policymakers. It holds application in measurement of variation in the prices. It also measures the inflation or deflation.
o, the salary of 2001 in 2006 will hold value = Salary in 2001 × {(CPI in 2006)÷(CPI in 2001)}
Keep the values in above mentioned formula to find the salary of 2001 in 2006
Value of salary = 75,000 × [tex]\frac{266}{177}[/tex]
Value of salary = 75,000 × 1.5028
Value of salary = $112,711.86
Hence, Dewey's 2001 salary in 2006 dollars is: $112,711.86
Learn more about Consumer Price Index-
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