A computer manufacturer sets up a production line A in 2015 for totally $1,000,000, with the following cost ratio and index Cost element Average in total cost Index (2015) Index forecasted (2020) Machines 60 170 220 Materials 30 168 188 Labours 10 140 160 If we would like to set up a similar production line B in 2020, what are the weighted indices for Year 2015 and 2020, and budget estimate for the total cost in Year 2020

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A computer manufacturer sets up a production line A in 2015 for totally $1,000,000, with the following cost ratio and index. Cost element Average %

A computer manufacturer sets up a production line A in 2015 for totally $1,000,000, with the following cost ratio and index.

Cost element	Average % in total cost	Index (2015)	Index forecasted (2020)
Machines	60	170	220
Materials	30	168	188
Labours	10	140	160

If we would like to set up a similar production line B in 2020, what are the weighted indices for Year 2015 and 2020, and budget estimate for the total cost in Year 2020?

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