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 weighted average unit selling price?

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 weighted average unit selling price?

Quizplus · Accepted Answer

To calculate the weighted average selling price, we need to find the total revenue generated from both products and divide by the total number of units sold.

Total revenue from Arks = 14,000 x $120 = $1,680,000 
Total revenue from Bins = 56,000 x $80 = $4,480,000 
Total revenue = $1,680,000 + $4,480,000 = $6,160,000

Total units sold = 14,000 + 56,000 = 70,000

Weighted average selling price = Total revenue / Total units sold = $6,160,000 / 70,000 = $88

Therefore, the answer is D, $88.

Carter Co Sells Two Products, Arks and Bins