Answer:
Average price, excluding taxes, for each CD is <u>10.20</u>.
Step-by-step explanation:
Given:
Cost of first 5 CDs, ![C_1 = 3.00](https://tex.z-dn.net/?f=C_1%20%3D%203.00)
Cost of each additional CD = 15.00
Now, cost of 10 additional CDs is the product of cost of one CD and total number of additional CDs. Therefore,
Cost of 10 additional CDs is, ![C_2=15.00\times 10=150.00](https://tex.z-dn.net/?f=C_2%3D15.00%5Ctimes%2010%3D150.00)
Now, total CDs purchased by Jana are, ![N=5+10=15](https://tex.z-dn.net/?f=N%3D5%2B10%3D15)
Total cost of the 15 CDs purchased is given as:
![C_T=C_1+C_2=3.00+150.00=153.00](https://tex.z-dn.net/?f=C_T%3DC_1%2BC_2%3D3.00%2B150.00%3D153.00)
Now, average price, excluding taxes, for each CD is given as:
![\textrm{Average price}=\frac{\textrm{Total cost of purchase}}{\textrm{Total number of CDs purchased}}\\\\\textrm{Average price}=\frac{C_T}{N}=\frac{153.00}{15}=10.20](https://tex.z-dn.net/?f=%5Ctextrm%7BAverage%20price%7D%3D%5Cfrac%7B%5Ctextrm%7BTotal%20cost%20of%20purchase%7D%7D%7B%5Ctextrm%7BTotal%20number%20of%20CDs%20purchased%7D%7D%5C%5C%5C%5C%5Ctextrm%7BAverage%20price%7D%3D%5Cfrac%7BC_T%7D%7BN%7D%3D%5Cfrac%7B153.00%7D%7B15%7D%3D10.20)
Therefore, the average price, excluding taxes, for each CD is 10.20.