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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.) A B Cost per Pound ($) Ingredient Beginning Ending C A B C 2.50 8.75 0.99 3.95 9.90 (a) Compute the price relatives for the three ingredients. Item Price Relative 0.90 Quantity (pounds) per 100 Pounds of Product What is your interpretation of this index value? Cost of raw materials is up 25 15 70 (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I= % for the chemical.

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.) A B Cost per Pound ($) Ingredient Beginning Ending C A B C 2.50 8.75 0.99 3.95 9.90 (a) Compute the price relatives for the three ingredients. Item Price Relative 0.90 Quantity (pounds) per 100 Pounds of Product What is your interpretation of this index value? Cost of raw materials is up 25 15 70 (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I= % for the chemical.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 28PPS
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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.) A Cost per Pound ($) Ingredient Beginning Ending B A с B с 2.50 8.75 Item Price Relative 0.99 3.95 (a) Compute the price relatives for the three ingredients. 9.90 0.90 Quantity (pounds) per 100 Pounds of Product What is your interpretation of this index value? Cost of raw materials is up 25 15 70 (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I = % for the chemical.
Transcribed Image Text:A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow. (Round your answers to the nearest integer.) A Cost per Pound ($) Ingredient Beginning Ending B A с B с 2.50 8.75 Item Price Relative 0.99 3.95 (a) Compute the price relatives for the three ingredients. 9.90 0.90 Quantity (pounds) per 100 Pounds of Product What is your interpretation of this index value? Cost of raw materials is up 25 15 70 (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I = % for the chemical.
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