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All superlative indices produce similar results and are generally the favored formulas for calculating price indices. [14] A superlative index is defined technically as "an index that is exact for a flexible functional form that can provide a second-order approximation to other twice-differentiable functions around the same point." [15]
A price index (plural: "price ... The two most basic formulae used to calculate price indices are the Paasche index ... Every other year is expressed as a percentage ...
An index level of 110, for example, means there has been a 10% increase in prices since the base period; similarly, an index level of 90 indicates a 10% decrease in prices. To calculate the percent change in prices between some previous period and a more current period using a PPI, the BLS uses the following formula:
Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10 percent share in that market.
This average can be calculated in at least two ways: (1) as the ratio of total category revenue to total category unit sales, or (2) as the unit-share weighted average price in the category. The market Average Price Paid includes the brand under consideration. Changes in unit shares will affect the average price paid.
Use this sales tax formula: sales tax = list price x sales tax rate (as a decimal). For example, Sarah is purchasing a refrigerator. The refrigerator is on sale for $1,200 and her sales tax rate ...
If margin is 30%, then 30% of the total of sales is the profit. If markup is 30%, the percentage of daily sales that are profit will not be the same percentage. Some retailers use markups because it is easier to calculate a sales price from a cost. If markup is 40%, then sales price will be 40% more than the cost of the item.
A CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices can be computed for different categories and sub-categories of goods and services, which are combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the ...