Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Consternation Corporation currently pays its production line workers $7.50 an hour and is scheduled to index their wages today. If the CPI is currently 130 and was 125 a year ago, the firm should increase the hourly wages of its workers by?
- Thread Starter
- 07-06-2016 05:21
- 09-06-2016 16:04
They need to increase the wages by $0.30. The index has increased by 4%, thus, the wages need to be increased by 4% to $7.80.