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 ($)Item2011 Quantity(cases)20112014Beer35,00017.5020.15Wine5,000100.00117.00Soft drink70,0008.008.80Compute the price relatives for this company's products. (Round your answers to two decimal places.)ItemPrice RelativeBeer Wine117.00Soft drink110.00Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.)weighted average of price relatives index: ____ weighted aggregate price index :______

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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	35,000	17.50	20.15
Wine	5,000	100.00	117.00
Soft drink	70,000	8.00	8.80

Compute the price relatives for this company's products. (Round your answers to two decimal places.)

Item	Price Relative
Beer
Wine	117.00
Soft drink	110.00

Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.)

weighted average of price relatives index: ____ weighted aggregate price index :______

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