Response to the following problem:
A microbrewery was built in 2004 at a total cost of $650,000. Additional information is given in the accompanying table (all 2000 indices=100). (3.3)
Average Percentage of Index Index Cost Element Total Brewery Cost (2004) (2008)
Labor 30 160 200 Materials 20 145 175 Equipment 50 135 162
a. Calculate a weighted index for microbrewery construction in 2008.
b. Prepare a budget estimate for a microbrewery in 2008.