At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit M 4600 $4.05 N 2300 12.60 O 6600 6.60 The appropriate cost per unit of inventory is: M N O $3.63 $11.28 $5.91 $3.20 $9.95 $5.21 $5.33 $5.33 $5.33 $4.05 $12.60 $6.60

Question

Business

Malachi Velazquez

20 January, 08:36

At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit M 4600 $4.05 N 2300 12.60 O 6600 6.60 The appropriate cost per unit of inventory is: M N O $3.63 $11.28 $5.91 $3.20 $9.95 $5.21 $5.33 $5.33 $5.33 $4.05 $12.60 $6.60

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Answers (1)

Know the Answer?

Morgan Lutz · Answer 1

M = $3.20

N = $9.95

O = $5.21

I believe it is the second option.

Explanation:

Item No. of Items Purchased Resale Price Per Unit

M 4,600 $4.05

N 2,300 $12.60

O 6,600 $6.60

total resale price:

M = 4,600 x $4.05 = $18,630 N = 2,300 x $12.60 = $28,980 O = 6,600 x $6.60 = $43,560 total = $91,170

markup % = ($91,170 - $72,000) / $72,000 = 26.625%

purchase cost per unit:

M = $4.05 / (1 + 26.625%) = $3.20 N = $12.60 / (1 + 26.625%) = $9.95 O = $6.60 / (1 + 26.625%) = $5.21