Brief Exercise 9-6

Stellar, Inc. buys 1,100 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $9,700. Stellar will group the CDs into three price categories for resale, as indicated below.

Group		No. of CDs		Price per CD
1		200		$7
2		700		14
3		200		20

Determine the cost per CD for each group, using the relative sales value method.