Question - Sheridan, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,900. Sheridan will group the CDs into three price categories for resale, as indicated below.
Group No. of CDs Price per CD
1 200 $6
2 700 12
3 300 18
Determine the cost per CD for each group, using the relative sales value method.