Product Pricing Two Products Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs The predicted costs for the year 2009 are as follows Variable Costs Fixed Costs Materials $200,000 $600,000 Other $150,000 $700,000 Each product uses 50 percent of the materials costs Based on manufacturing time, 40 percent of the other costs are assigned to the CDs, and 60 percent of the other costs are assigned to the DVDs The management of Quality Data desires an annual profit of $50,000 (a) What price should Quality Data charge for each disk pack if management believes the DVDs sell for 20 percent more than the CDs Rounds answers to the nearest cent CDs $ DVDs $ (b) What is the total profit per product using the selling prices determined in part (a) Use negative signs with answers, if appropriate CDs $ DVDs $

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Product Pricing  Two Products Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack  The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs  The predicted costs for the year 2009 are as follows  Variable Costs Fixed Costs Materials $200,000 $600,000 Other $150,000 $700,000 Each product uses 50 percent of the materials costs  Based on manufacturing time, 40 percent of the other costs are assigned to the CDs, and 60 percent of the other costs are assigned to the DVDs  The management of Quality Data desires an annual profit of $50,000  (a) What price should Quality Data charge for each disk pack if management believes the DVDs sell for 20 percent more than the CDs  Rounds answers to the nearest cent  CDs  $   DVDs  $   (b) What is the total profit per product using the selling prices determined in part (a)  Use negative signs with answers, if appropriate  CDs  $   DVDs  $

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Product Pricing: Two Products Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack. The

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	Variable Costs	Fixed Costs
Materials	$200,000	$600,000
Other	$150,000	$700,000