A company uses 3 machines X,Y and Z for their production. The company repairs each machine every time in breaks down and keeps a record of the number of breakdowns and the cost of each repair. The records for 2016 and 2021 are shown below.

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.CR: Review Problem Set
Problem 64CR
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A company uses 3 machines X,Y and Z for their production. The company repairs each
machine every time in breaks down and keeps a record of the number of breakdowns and the
cost of each repair. The records for 2016 and 2021 are shown below.
2016
2021
Machine
Cost of each
repair (Rands)
1000
Cost of each
Number of
Number of
repair (Rands)
800
breakdowns
breakdowns
10
14
Y
400
13
800
20
2000
6.
2400
8
The cost of repair of each machine is fixed throughout the year,
time machine X broke down, it cost R800 to fix it.
for example in 2016, every
Adapt the formula for the Laspeyres Price Index to calculate the Laspeyres "Cost of repair"
Index for 2021 using 2016 as the base year.
A. 137.5
В. 138.1
C. 139.8
D. 140.0
Transcribed Image Text:A company uses 3 machines X,Y and Z for their production. The company repairs each machine every time in breaks down and keeps a record of the number of breakdowns and the cost of each repair. The records for 2016 and 2021 are shown below. 2016 2021 Machine Cost of each repair (Rands) 1000 Cost of each Number of Number of repair (Rands) 800 breakdowns breakdowns 10 14 Y 400 13 800 20 2000 6. 2400 8 The cost of repair of each machine is fixed throughout the year, time machine X broke down, it cost R800 to fix it. for example in 2016, every Adapt the formula for the Laspeyres Price Index to calculate the Laspeyres "Cost of repair" Index for 2021 using 2016 as the base year. A. 137.5 В. 138.1 C. 139.8 D. 140.0
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