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 ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product A 1.50 3.45 25 B 8.75 9.90 15 0.99 0.90 50 (a) Compute the price relatives for the three ingredients. Item Price Relative A B (b) Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product. I = What is your interpretation of this index value? Cost of raw materials is up % for the chemical. A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period. Unit Price ($) Item 2011 Quantity (cases) 2011 2014 Beer 30,000 18.50 20.15 Wine 5,000 100.00 116.00 Soft drink 50,000 8.00 8.80 Compute the price relatives for this company's products. (Round your answers to two decimal places.) Item Price Relative Beer Wine Soft drink Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.) weighted average of price relatives index weighted aggregate price index Need Help? Read It Talk to a Tutor Submit