HomeWork (C 24 The cost of each item in the basket and the total cost of the bas
ID: 1104087 • Letter: H
Question
HomeWork (C 24 The cost of each item in the basket and the total cost of the basket are shown for 2014 Perform these same calculations for 2015 and 2016, and enter the results in the following table. 2014 2015 2016 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 15 8 Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index 30 70 500 100 1,200 1,900 100 2 70 100 130 250 50 10 150 ] 120 180 Suppose the base year for this price index is 2014. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Type here to search 0 0 e#a@Explanation / Answer
Question 1
Following is the complete table -
Items
Quantity
2014
2015
2016
Price
Cost
Price
Cost
Price
Cost
Notebooks
15
2
30
5
75
8
120
Calculators
1
70
70
100
100
130
130
Large coffee
250
2
500
2
500
2
500
Energy drinks
50
2
100
4
200
6
300
Textbooks
10
120
1,200
150
1,500
180
1,800
Total Cost
1900
2375
2850
Price Index
100
125
150
Price index in above table is calculated as follows -
Price index for 2015 = (Total cost of basket in 2015/Total cost of basket in 2014) * 100
Price index for 2015 = ($2,375/$1,900) * 100 = 125
Price index for 2016 = (Total cost of basket in 2016/Total cost of basket in 2014) * 100
Price index for 2016 = ($2,850/$1,900) * 100 = 150
Items
Quantity
2014
2015
2016
Price
Cost
Price
Cost
Price
Cost
Notebooks
15
2
30
5
75
8
120
Calculators
1
70
70
100
100
130
130
Large coffee
250
2
500
2
500
2
500
Energy drinks
50
2
100
4
200
6
300
Textbooks
10
120
1,200
150
1,500
180
1,800
Total Cost
1900
2375
2850
Price Index
100
125
150
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