3.During the same 10-year period, your after-tax income rose from $30,000 to $45,000. The composite CPI at the beginning of the period was 96 and at the end of the 10-year period is 114.(7 marks)

a.Has the percent change in your real after-tax income from the beginning to the end of the 10-year period matched the change in after-tax nominal income?

b.Has the change in your real income kept up with the inflation rate?

7.Norwood Industries has annual fixed costs of $1.8 million. Unit variable costs are currently 55% of selling price.(9 marks)

Answer to the nearest million and .01%

a.What annual revenue is required to breakeven?

b.What annual revenue would produce a loss of $100,000 in a year?

c.What annual revenue would produce a profit of $300,000?

d.If prices are increased by 10%, but total revenue remains at the value determined in (c), what will be the percent change in sales volume?