Answer:
Group 1 CD cost per unit = $2.50
Group 2 CD cost per unit = $5.00
Group 3 CD cost per unit = $7.50
Explanation:
Group 1 : 300 CDs x $5 per CD = $1,500
Group 2 : 800 CDs x $10 per CD = $8,000
Group 3 : 300 CDs x $15 per CD = $4,500
total sales price = $1,500 + $8,000 + $4,500 = $14,000
total cost of 1,400 CDs = $7,000
cost per CD relative to sales value = $7,000 / $14,000 = 0.5
Group 1 CD cost per unit = $5 x 0.5 = $2.50
Group 2 CD cost per unit = $10 x 0.5 = $5.00
Group 3 CD cost per unit = $15 x 0.5 = $7.50