Question

Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Consternation Corporation currently pays its production line workers $8.00 an hour and is scheduled to index their wages today. If the CPI is currently 160 and was 128 a year ago, the firm should increase the hourly wages of its workers by

A. $0.25.
B. $1.60.
C. $2.00.
D. $2.56.

Answer 1

correct option is C. $2.00

Step-by-step explanation:

given data

currently pays = $8 an hour

CPI currently = 160

old = 128 year

to find out

firm should increase the hourly wages of its workers by

solution

we get here first rate that is express as

rate =
`(CPI*currently\ pay)/(time)` ...........1

rate =
`(160*8)/(128)`

rate = $10

So Increase is here as = $10 - $8

increase by = $2

so correct option is C. $2.00