Brief Exercise 9-6
Pharoah, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $9,100. Pharoah will group the CDs into three
price categories for resale, as indicated below.
Group No. of CDs Price per CD
1 100 $6
2 900 12
3 200 18
Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round final answers to 2 decimal
places, e.g. 5.85.)
Group Cost per CD
1 $ 364
2 $
3 $