Question

A large manufacturer purchases an identical component from three independent suppliers that differ in unit price and quantity supplied. The relevant data for 2012 and 2014 are given here.

Unit Price ($) | |||
---|---|---|---|

Supplier | Quantity (2012) | 2012 | 2014 |

A | 150 | 5.45 | 6.00 |

B | 200 | 5.60 | 5.95 |

C | 160 | 5.50 | 6.70 |

(a)

Compute the price relatives (index number) for each of the component suppliers separately using 2012 as the base year. (Round your answers to the nearest integer.)

Item | Price Relative |
---|---|

A | |

B | |

C |

Compare the price increases by the suppliers over the two-year period.

---Select--- All Some No prices increased, with the greatest price relative being from supplier ---Select--- A B C and the smallest price relative being from supplier ---Select--- A B C .

(b)

Compute an unweighted aggregate price index for the component part in 2014. (Round your answer to the nearest integer.)

*I*_{2014} =

(c)

Compute a 2014 weighted aggregate price index for the component part. (Round your answer to the nearest integer.)

*I*_{2014} =

What is the interpretation of this index for the manufacturing firm? (Round your answer to the nearest integer.)

There was a % increase in the price of the component part over the two-year period.

Answer #1

A large manufacturer purchases an identical component from three
independent suppliers that differ in unit price and quantity
supplied. The relevant data for 2012 and 2014 are given here.
Unit Price ($)
Supplier
Quantity (2012)
2012
2014
A
150
5.45
6.00
B
200
5.60
5.95
C
160
5.50
6.20
(a)
Compute the price relatives for each of the component suppliers
separately. (Round your answers to the nearest integer.)
Item
Price Relative
A
B
C
Compute an unweighted aggregate price index...

Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$14
$10
2
$14
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...

Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$13
$10
2
$11
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...

Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$13
$10
2
$15
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...

Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$14
$10
2
$14
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...

Problem 4-11 (Algorithmic)
Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$11
$12
$15
2
$11
$14
$11
Each supplier has a limited capacity in terms of the total
number of components it can supply. However,...

A certain beverage company provides a complete line of beer,
wine, and soft drink products for distribution through retail
outlets in central Iowa. Unit price data for 2011 and 2014 and
quantities sold in cases for 2011 follow. Use 2011 as the base
period.
Unit Price ($)
Item
2011 Quantity
(cases)
2011
2014
Beer
40,000
19.50
20.15
Wine
5,000
100.00
116.00
Soft drink
70,000
8.00
8.80
Compute the price relatives for this company's products. (Round
your answers to two decimal...

Benson Manufacturing is considering ordering electronic
components from three different suppliers. The suppliers may differ
in terms of quality in that the proportion or percentage of
defective components may differ among the suppliers. To evaluate
the proportion defective components for the suppliers, Benson has
requested a sample shipment of 500 components from each supplier.
The number of defective components and the number of good
components found in each shipment is as
follows.
Supplier
Component
A
B
C
Defective
10
30...

Benson Manufacturing is considering ordering electronic
components from three different suppliers. The suppliers may differ
in terms of quality in that the proportion or percentage of
defective components may differ among the suppliers. To evaluate
the proportion of defective components for the suppliers, Benson
has requested a sample shipment of 500 components from each
supplier. The number of defective components and the number of good
components found in each shipment are as follows. Component
Supplier A B C Defective 15...

Seafood price and quantity data are reported by the U.S. Census
Bureau. Data for the years 2000 and 2009 follow.
2000
Qty. (000 lb.)
2000
Price ($/pound)
2000
Price ($/pound)
Halibut
75,190
1.91
2.33
Lobster
83,180
3.62
3.09
Tuna
50,779
1.87
1.97
a. Compute a price relative for each type of
seafood. Round your answers to one decimal place.
Seafood
Price Relatives
Halibut
Lobster
Tuna
b. Compute a weighted aggregate price index for
U.S. domestic seafood catch. Round your answer...

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