Instructions

Answer the following questions with the given information and the graph:

Alpha company uses Rex as main raw material for manufacturing Item A, Item B, Item C and Item D.

The graph below shows the proportion of items produced and price trend of Rex. Annual Res_Index of an item in a given year is measured as follows:

Res_Index of Item A in Year 2013 = Absolute Value (Production of Item A in 2013 - Production of Item A in 2012) / Absolute Value (Rex Price in 2013 - Rex Price in 2012)

image 40 a
Question 68

From the years mentioned below,in which year Res_Index for item D was highest?

1. 2012
2. 2013
3. 2014
4. 2017

Solution

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The Res_Index for D over the years is:

2012: Res_Index = (200-160)/(80-74) = 6.66
2013: Res_Index = (200-150)/(80-74) = 8.33
2014: Res_Index = (150-90)/(85-80) = 12
2017:Res_Index = (300-200)/(74-63) = 9.09

Thus, 2014 is the desired year.

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