Question: Vaughn, Inc. buys 1,300 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $10,000. Vaughn will

Vaughn, Inc. buys 1,300 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $10,000. Vaughn will group the CDs into three price categories for resale, as indicated below.

Group	No. of CDs	Price per CD
1	100	$7
2	1,000	15
3	200	22

Determine the cost per CD for each group, using the relative sales value method

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