Labor Cost index: 160 (2006) 200 (2016)
Annual Labor cost for similar equipment for 2006: $300,000
Material Cost index: 600 (2010) 750 (2016)
(Refer to Table 1) Judy would like to estimate the annual labor & material costs (for 2016) for new equipment based upon the following data.
What is the the estimate of the annual labor cost for 2016?
a. $275,000.
b. $300,000.
c. $375,000.
d. $400,000.
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