Question

In: Statistics and Probability

Salvatore Auto Supplies has retail stores located in in eight cities in Ohio. The price they...

Salvatore Auto Supplies has retail stores located in in eight cities in Ohio. The price they charge for a particular product in each city varies because of differing competitive conditions. The price they charge for a popular brand of motor oil in each city is provided in the table below, along with the number of cases that Salvatore Auto Supplies sold last quarter in each city.

City

Price ($)

Sales (cases)

Cleveland

34.99

401

Columbus

34.14

1425

Cincinnati

37.25

294

Toledo

35.15

882

Akron

42.17

751

Chillicothe

38.59

1015

Youngstown

38.65

1464

Sandusky

37.99

609

Calculate the average sales price per case for this product during the last quarter. (round your answer to 2 decimal places, using conventional rounding rules)

ANSWER: $ per case

Solutions

Expert Solution

We are provided with the data which provides information about the price they charge for a particular product along with the number of cases that Salvatore Auto Supplies sold last quarter in each city.

Inorder to calculate the average sales price per case for this product during the last quarter, we should first calculate the sales price per product for each city by dividing the sales price by the number of cases sold last quarter. Then sum up the sales price per product for each city and divide it by number of cities to get the average sales price per case for this product​ during last quarter.

There are totally 8 cities in the da

City

Price ($)

 Number of cases sold    Sales price per case   
Cleveland​ 34.99 401 0.08726
Columbus 34.14 1425 0.02395
Cincinnati 37.25 294 0.12670
Toledo 35.15 882 0.03985
Akron 42.17 751 0.05615
Chillicothe 38.59 1015 0.03802
Youngstown 38.65 1464 0.02640
Sandusky 37.99 609 0.06238

Thus sum of sales price per product is given by,

Total sales price per product (case)

  

Thus total sales price per case during the last quarter is 0.4607 $

AVERAGE SALES PRICE PER CASE:

Now the average sales price per case during the last quarter is total sales price per case divided by number of cities (since Salvatore Auto Supplies has retail stores located in eight cities).

Average sales price per case

Thus the average sales price per case for this product during the last quarter is 0.06 $

orchestra answered 1 year ago
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