During the past six months, the purchasing agent bought:
Tons of Coal 1,200 3,000 500 -
Price Per Ton $28.50 $87.25 $88.00
What is the weighted mean price per ton?
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A. B. C. D. E.Explanation
(1200*28.5)+(3000*87.25)+(500*88) = 339950. Mean = 339950/4700 = 72.33
To calculate the weighted mean price per ton, we need to multiply the quantity purchased by the corresponding price per ton for each transaction, sum up these values, and then divide by the total quantity purchased.
Let's calculate the weighted mean price per ton step by step:
Calculate the total quantity purchased: Total Quantity = 1,200 + 3,000 + 500 = 4,700 tons
Multiply the quantity purchased by the corresponding price per ton for each transaction: For the first transaction: 1,200 tons * $28.50/ton = $34,200 For the second transaction: 3,000 tons * $87.25/ton = $261,750 For the third transaction: 500 tons * $88.00/ton = $44,000
Sum up the values obtained in step 2: Total Price = $34,200 + $261,750 + $44,000 = $339,950
Calculate the weighted mean price per ton: Weighted Mean Price per Ton = Total Price / Total Quantity Weighted Mean Price per Ton = $339,950 / 4,700 tons Weighted Mean Price per Ton ≈ $72.33 (rounded to the nearest cent)
Therefore, the correct answer is E. $72.33.