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Question: indigo inc buys 1200 computer game cds from a distributor...

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Indigo, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,700. Indigo will group the CDs into three price categories for resale, as indicated below. Group No. of CDs Price per CD

1 200 $6

2 900 $11

3 100 $17

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

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