Question

# A company has three groups of products, A, B, and C. Recently, the company paid \$1,800...

A company has three groups of products, A, B, and C. Recently, the company paid \$1,800 for shipping fees and received 8,500 units that are allocated among these three groups. Below is the information of these three groups: (30 pts)

 Group Number of Units Sales Price per unit A 2,500 0.15 B 5,500 0.36 C 500 0.72

(2) Using the relative sales value method, what is the cost per item in Group B?

(3) Using the relative sales value method, what is the cost per item in Group C?

 Group Units Selling Price Sales Value Weights Weight*\$1,800 A 2500 0.15 375 0.1381 248.6 B 5500 0.36 1980 0.7293 1312.7 C 500 0.72 360 0.1326 238.7 Total 2715 1.0000 1800.0

1.Group B

Total cost allocated to Group B=\$1,312.7

No o f Units =5500 Units

Cost Per Unit =\$0.239.(1312.7/5500)

2. Group C

Total cost allocated to Group C=\$238.7

No o f Units =500 Units

Cost Per Unit =\$0.477.(238.7/500)

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