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 $1\mathrm{.}503\mathrm{.}4525$

B $8\mathrm{.}759\mathrm{.}9010$

C $0\mathrm{.}990\mathrm{.}9570$

$($a$)$

Compute the price relatives for the three ingredients.

Item Price Relative

A

B

C

$($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.