$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Cost per Pound $(\backslash$$$)\}$ & $\backslash \backslash$

$\backslash$hline Ingredient & Beginning & Ending & $\backslash$begin$\{$tabular$\}\{$c$\}$

Quantity $($pounds$)\backslash \backslash$

per $100$ Pounds of Product

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline A & $2\mathrm{.}50$ & $3\mathrm{.}95$ & $25\backslash \backslash$

$\backslash$hline B & $8\mathrm{.}75$ & $9\mathrm{.}90$ & $10\backslash \backslash$

$\backslash$hline C & $0\mathrm{.}99$ & $0\mathrm{.}95$ & $70\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$($a$)$ Compute the price relatives for the three ingredients.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|\}$

$\backslash$hline Item & Price Relative $\backslash \backslash$

$\backslash$hline A & $\backslash \backslash$

$\backslash$hline B & $\backslash \backslash$

$\backslash$hline C & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$($b$)$ Compute a weighted average of the price relatives to develop a one$-$year cost index for raw materials used in the product.

$\backslash ($ I$=\backslash )$

What is your interpretation of this index value?

Cost of raw materials is up $[$

$\backslash$& $\backslash \%$ for the chemical.