Question

A company enters into a contract to sell 70 products to a customer for $80 each. After the company transfers 30 of the 70 products, the customer orders an additional 25 products. The contract is modified, and the additional 25 products are priced at $40 each. What is the price per product for the remaining 65 products (40 products from the original contract and 25 products from the modification)?

a. $80 for the remaining 40 from the original contract and $40 for the additional 25 products from the modification.
b. . $60, the average of the prices for the remaining products.
c. $40, the new price for the products specified in the contract modification.
d. $64.62, the blended price for the products from the original contract and the modification.

Answer 1

d. $64.62, the blended price for the products from the original contract and the modification.

Step-by-step explanation:

At the time of multiplying the remaining products of the first contract by the original value, and then multiplying the products added with the modified value we must add both results and divide them by the total products to be sent, that way we will obtain the average price for each of the products.

40 products x $80 = $3.200

25 products x $40 = $ 1.000

$3.200 + $1.000 = $4.200

$4.200/ 65 products = $64.62