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Vaughn, Inc. buys 1,300 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $10,000. Vaughn will
Vaughn, Inc. buys 1,300 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $10,000. Vaughn will group the CDs into three price categories for resale, as indicated below.
Group | No. of CDs | Price per CD | |||
1 | 100 | $7 | |||
2 | 1,000 | 15 | |||
3 | 200 | 22 |
Determine the cost per CD for each group, using the relative sales value method
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