Determining cost per CD for each group

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PC Plus buys 1,000 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $6,000. PC Plus will group the CDs into three price categories for resale, as indicated below.

Group Price per CD No. of CDs
1 $ 5.00 100
2 10.00 800
3 15.00 100

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

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Sale Volume of Group 1=5*100=$500
Sale Volume of Group 2=10*800=$8000
Sale Volume of Group ...

Solution Summary

Solution describes the steps to determine cost per CD for each group using the relative sales value method.

$2.49