Cost per Pound ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product 2.50 2.95 25 B 8.75 9.90 15 0.99 0.95 50

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter8: Polynomials
Section8.4: Special Products
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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.)
Cost per Pound ($)
Ingredient Beginning Ending
Quantity (pounds)
per 100 Pounds of Product
A
2.50
2.95
25
B
8.75
9.90
15
0.99
0.95
50
(a) Compute the price relatives for the three ingredients.
Item
Price Relative
A
в
(b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product.
I =
What is your interpretation of this index value?
Cost of raw materials is up
% for the chemical.
Transcribed Image Text:A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow. (Round your answers to the nearest integer.) Cost per Pound ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product A 2.50 2.95 25 B 8.75 9.90 15 0.99 0.95 50 (a) Compute the price relatives for the three ingredients. Item Price Relative A в (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I = What is your interpretation of this index value? Cost of raw materials is up % for the chemical.
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