Chip's Chocolate Factory Has an Agreement with Its Workers to Completely

Multiple Choice

Chip's Chocolate Factory has an agreement with its workers to completely index the wages of its employees to inflation in the CPI. Chip's currently pays its production line workers $20 an hour and is scheduled to index their wages today. If the CPI is currently about 120 and was 100 a year ago, by how much should Chip's increase the hourly wages of its workers?

A) $0.58
B) $0.65
C) $1.00
D) $4.00