Hi I need help with the following questions Question 5 (2 + 3 = 5 marks) a)
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Hi I need help with the following questions Question 5 (2 + 3 = 5 marks)
a) The CPI for food and non-alcoholic beverages was 177.5 in 2007-08 and 255.6 in 2018-19. If a chicken schnitzel and chips cost $12.50 in 2007-08, what would it cost in 2018-19 if its price had moved in line with the CPI?
b) CEO has determined the annual profit for her company for the years 2000, 2005 and 2010. The CPI for each year was also recorded.
| Year | Income | CPI |
| 2000 | 130,000 | 86.6 |
| 2005 | 185,000 | 121.5 |
| 2010 | 245,000 | 170.1 |
After removing the effect of inflation, what is the actual percentage change in the company's annual profit in the period 2005 to 2010?
Expert Answer:
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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