Q1) Given the following contract information, compute adjusted contract price:
| Contract Value |
$550,000 |
| Subject to Adjustment |
20% |
| Base Index |
125.5 |
| Index at Delivery |
132.7 |
Q2) Price of the item was $200 in 19X4 and $220 in 10X5. Compute simple price index for this item by using 19X4 as base year.