A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow (Round your answers to the nearest integer.) Cost per Pound ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product A 2.50 2.95 25 B 8.75 9.90 15 C 0.99 0.90 50 (a) Compute the price relatives for the three ingredients. Item Price Relative A 118 B 113 C 91 (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I-99 X What is your interpretation of this index value? Cost of raw materials is up 1 X% for the chemical. Need Help? Read It Watch It Submit Answer Type here to search D L₁ 72°F 8:53 PM 4/26/2024 3 6 7 8
A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow (Round your answers to the nearest integer.) Cost per Pound ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product A 2.50 2.95 25 B 8.75 9.90 15 C 0.99 0.90 50 (a) Compute the price relatives for the three ingredients. Item Price Relative A 118 B 113 C 91 (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I-99 X What is your interpretation of this index value? Cost of raw materials is up 1 X% for the chemical. Need Help? Read It Watch It Submit Answer Type here to search D L₁ 72°F 8:53 PM 4/26/2024 3 6 7 8
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
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ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
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ChapterP: Prologue: Calculator Arithmetic
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Transcribed Image Text:A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow
(Round your answers to the nearest integer.)
Cost per Pound ($)
Ingredient Beginning Ending
Quantity (pounds)
per 100 Pounds of Product
A
2.50
2.95
25
B
8.75
9.90
15
C
0.99
0.90
50
(a) Compute the price relatives for the three ingredients.
Item
Price Relative
A
118
B
113
C
91
(b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product.
I-99
X
What is your interpretation of this index value?
Cost of raw materials is up 1
X% for the chemical.
Need Help?
Read It
Watch It
Submit Answer
Type here to search
D
L₁
72°F
8:53 PM
4/26/2024
3
6
7
8
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