Your supervisor is development manager of the Ore Mining & Exploration Geological Agency (OMEGA). It has been his job to track the cost of the Deep Ore Extraction Tunnel II in Grasberg. Twenty-five years ago he created the OMEGA Cost Index to track these costs. Costs during the first year of the index were $12,000 per linear meter of constructed tunnel (the index value was set a 100 for that first year). This past year a survey of contractors revealed that costs were $72,000 per linear meter.

1. What index number will your supervisor publish in his report for this year?

B. If the index value was 525 last year, what was the cost per linear meter last year?