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 unit selling price, we need to multiply the number of units sold by the unit price, add the values for both products and divide by the total units sold. 
Using the data given, we have:
Arks: 14,000 x $150 = $2,100,000
Bins: 56,000 x $60 = $3,360,000
Total sales: $2,100,000 + $3,360,000 = $5,460,000
Weighted average unit selling price: $5,460,000 / 70,000 units = $78
Therefore, the closest answer is option D, $88.

Carter Co Sells Two Products, Arks and Bins