Plantar Pharmaceuticals produces an anti-inflammatory medication that contains 8 parts cellulose, 6 parts meloxicam, and 2 parts povidone.Ingredient costs are as follows: Cellulose, $2.50 per ounce; meloxicam, $5 per ounce; and povidone, $12 per ounce.Using the weighted average approach, compute the cost per ounce of the medication.
A)$4.125
B)$5.004
C)$4.458
D)$4.625
E)$5.135

Question

Quizplus · Accepted Answer

The cost per ounce of the medication is calculated using the weighted average approach. The total parts of ingredients are 8 (cellulose) + 6 (meloxicam) + 2 (povidone) = 16 parts. The total cost is (8 parts * $2.50) + (6 parts * $5) + (2 parts * $12) = $20 + $30 + $24 = $74. The cost per ounce is $74 / 16 parts = $4.625.

Plantar Pharmaceuticals Produces an Anti-Inflammatory Medication That Contains 8 Parts