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Pearl, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,600. Pearl will
Pearl, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,600. Pearl will group the CDs into three price categories for resale, as indicated below.
Group | No. of CDs | Price per CD | |||
1 | 100 | $6 | |||
2 | 800 | 11 | |||
3 | 300 | 17 |
Determine the cost per CD for each group, using the relative sales value method.
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