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Sagot :
The relative price of ingredient A is 158, ingredient B is 131.1 and ingredient C is 96.
In the given question we have to compute the price relatives for the three ingredients A, B and C.
Now finding the relative price using the formula.
Relative Price(RP) = Ending Cost(E)/Beginning Cost(B) *100
Now from the given table;
Ingredient Beginning(B) Ending(E) E/B E/B*100
A 2.50 3.95 1.58 158
B 8.75 9.90 1.131 131.1
C 0.99 0.95 0.96 96
Hence, the relative price of ingredient A is 158, ingredient B is 131.1 and ingredient C is 96.
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The right question is
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 3.95 25
B 8.75 9.90 15
C 0.99 0.95 70
Compute the price relatives for the three ingredients.
Item Price Relative
A
B
C
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