8. Emily needs to estimate the annual labor and material cost for a new facility. The data obtained were Labor cost index was 120 ten years ago and 190 today. Annual labor cost for a similar production facility was $602,004 ten years ago. Material cost index was 544 four years ago and 712 today. Annual material cost for a similar production facility was $2,455,000 four years ago. Estimate the annual labor cost and annual material cost for the new facility.
8. Emily needs to estimate the annual labor and material cost for a new facility. The data obtained were Labor cost index was 120 ten years ago and 190 today. Annual labor cost for a similar production facility was $602,004 ten years ago. Material cost index was 544 four years ago and 712 today. Annual material cost for a similar production facility was $2,455,000 four years ago. Estimate the annual labor cost and annual material cost for the new facility.
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Question
![8. Emily needs to estimate the annual labor and material cost for a new facility. The data
obtained were
Labor cost index was 120 ten years ago and 190 today. Annual labor cost for a similar
production facility was $602,004 ten years ago. Material cost index was 544 four years ago and
712 today. Annual material cost for a similar production facility was $2,455,000 four years ago.
Estimate the annual labor cost and annual material cost for the new facility.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc52f285d-1ef9-4f74-a9e9-e721d20ce21e%2Fbc3e38c4-6e11-4594-b129-da86ce90a91f%2Fkiqndc1n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. Emily needs to estimate the annual labor and material cost for a new facility. The data
obtained were
Labor cost index was 120 ten years ago and 190 today. Annual labor cost for a similar
production facility was $602,004 ten years ago. Material cost index was 544 four years ago and
712 today. Annual material cost for a similar production facility was $2,455,000 four years ago.
Estimate the annual labor cost and annual material cost for the new facility.
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