Sheridan, Inc. buys 800 video game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,000. Sheridan will group the CDs into three price categories for resale, as indicated below. Group 1 2 3 Group 1 2 No. of CDs 3 $ Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round answers to 2 decimal places, e.g. 15.25.) $ 160 $ 480 160 Price per CD $5 10 Cost per CD 15
Sheridan, Inc. buys 800 video game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,000. Sheridan will group the CDs into three price categories for resale, as indicated below. Group 1 2 3 Group 1 2 No. of CDs 3 $ Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round answers to 2 decimal places, e.g. 15.25.) $ 160 $ 480 160 Price per CD $5 10 Cost per CD 15
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Sheridan, Inc. buys 800 video game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,000.
Sheridan will group the CDs into three price categories for resale, as indicated below.
Group
1
2
3
Group
1
2
No. of CDs
3
$
Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round
answers to 2 decimal places, e.g. 15.25.)
$
160
$
480
160
Price per CD
$5
10
Cost per CD
15](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaedf255-819e-4de4-8945-bb77a92dd064%2F4d67a380-e9d5-4260-8d54-31d110ee971f%2Fgi6von_processed.png&w=3840&q=75)
Transcribed Image Text:Sheridan, Inc. buys 800 video game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,000.
Sheridan will group the CDs into three price categories for resale, as indicated below.
Group
1
2
3
Group
1
2
No. of CDs
3
$
Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round
answers to 2 decimal places, e.g. 15.25.)
$
160
$
480
160
Price per CD
$5
10
Cost per CD
15
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