Carter Co. sells two products, Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are: What was Carter Co.'s unit selling price of E, with E representing one overall "enterprise" product?

Question

Carter Co. sells two products, Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:  What was Carter Co.'s unit selling price of E, with E representing one overall "enterprise" product?

Quizplus · Accepted Answer

To calculate the unit selling price of the enterprise product, we need to find the total revenue generated by Carter Co. from both Arks and Bins. Using the information given, we can calculate the revenue as follows:

Revenue from Arks = 14,000 units x $120 per unit = $1,680,000
Revenue from Bins = 56,000 units x $40 per unit = $2,240,000
Total revenue = $1,680,000 + $2,240,000 = $3,920,000

Now, we can calculate the unit selling price of the enterprise product by dividing the total revenue by the total number of units sold:

Unit selling price of the enterprise product = Total revenue / Total units sold
= $3,920,000 / (14,000 + 56,000)
= $3,920,000 / 70,000
= $56 per unit

However, the question asks for the unit selling price of the enterprise product as a whole, not per unit. Therefore, we need to multiply the unit selling price by the number of units sold:

Unit selling price of the enterprise product = $56 x (14,000 + 56,000)
= $56 x 70,000
= $3,920,000

Therefore, the unit selling price of the enterprise product was $3,920,000, which corresponds to option D.

Carter Co Sells Two Products, Arks and Bins