Your consumer printer has the following relative advantages for the four purchase components of the product.What is your relative cost of purchase index?
A)6.5
B)126
C)74
D)13.5
E)54

Question

Your consumer printer has the following relative advantages for the four purchase components of the product.What is your relative cost of purchase index? 
A)6.5 
B)126 
C)74 
D)13.5 
E)54

Quizplus · Accepted Answer

The relative cost of purchase index is calculated by multiplying the weight of each purchase component by the advantage of the printer for that component, and then adding up the products for all four components. Using the weights and advantages given in the problem, we get:

(0.4 x 40) + (0.2 x 20) + (0.2 x 30) + (0.2 x 15) = 16 + 4 + 6 + 3 = 29

Therefore, the relative cost of purchase index is 29.

Out of the given options, only option B has a value close to 29 (126). None of the other options are in the same ballpark. Therefore, the best choice is B.

Your Consumer Printer Has the Following Relative Advantages for the Four