Question

20 years ago, a certain part cost $175. The cost index was 103 and now the index is 320. What cost below is closest to the estimated current cost for the item? Group of answer choices

Answer 1

The estimated current cost for the item is $544

Step-by-step explanation:

The computation of the estimated current cost for the item is shown below:

= Cost index in present ÷ Previous cost index × cost of certain part

= 320 ÷ 103 × $175

= $544

Hence, the estimated current cost for the item is $544

The same is to be considered

We simply applied the above formula so that the estimated current cost could come