If the company would like to calculate the average of one of their variable expenses, the company could use the weighted average formula with sales as the weight to gain a better understanding of their expenses compared to how much they produce or sell.
http://www.financeformulas.net/Weighted_Average.html
This worksheet helps you calculate the average selling price for multiple products sold across multiple distribution channels. It also calculates the simple average selling price of the products sold in each channel. Since 1996, JaxWorks has offered a suite of Free Excel workbooks and spreadsheets, and associated MS Word, PDF and HTML documents, that cover a number of financial, accounting and sales functions. These are invaluable small business tools.
http://www.jaxworks.com/average.xls
An example would be the average of 1,2, and 3 would be the sum of 1 + 2 + 3 divided by 3, which would return 2. However, the weighted average formula looks at how relevant each number is. Say that 1 only happens 10% of the time while 2 and 3 each happen 45% of the time.
http://www.financeformulas.net/Weighted_Average.html
Therefore, the Weighted Average Product Cost is $130; assuming the selling rate of TV Model A is 70% and the selling rate of TV Model B is 30%. Notice, the selling rate used to determine the weighted average selling price is also used to determine the weighted average product cost (IE 70% and 30%).
http://businessplanhut.com/weighted-average-multiple-products
$200 (selling price of Model A) x 70% = 140. $400 (selling price of Model B) x 30% = 120. The sum of 140 and 120 is $260. Therefore, the weighted average selling price of the two Models, at the expected selling rates of 70% and 30%, is $260. Remember earlier, we calculated the Average Selling Price to be $300. The Average selling price assumes an equal selling rate for each model (that is; 50% Model A and 50% Model B).
http://businessplanhut.com/weighted-average-multiple-products
Average Selling Price - ASP. An average selling price (ASP) is the price a certain class of good or service is typically sold for. Average selling price is affected by the type of product and the product life cycle.
http://www.investopedia.com/terms/a/averagesellingprice.asp
JaxWorks Small Business Spreadsheet Factory™. Since 1996, JaxWorks has offered a suite of Free Excel workbooks and spreadsheets, and associated MS Word, PDF and HTML documents, that cover a number of financial, accounting and sales functions.
http://www.jaxworks.com/average.xls
The weighted average selling price reduces all your selling prices (of each product you plan to sell) down to one single selling price. For instance, if you plan to sell 10 products, then you will have 10 selling prices. The weighted average method will reduce those ten selling prices down to one single selling price.
http://businessplanhut.com/weighted-average-multiple-products
The most powerful application for the weighted average selling price and the weighted average product cost is seen when a company's sell many products or provide many services. Once again , if you plan to sell 10 products, then you will have 10 selling prices and 10 product costs.
http://businessplanhut.com/weighted-average-multiple-products
The weighted average formula is used to calculate the average value of a particular set of numbers with different levels of relevance. The relevance of each number is called its weight. The weights should be represented as a percentage of the total relevancy. Therefore, all weights should be equal to 100%, or 1.
http://www.financeformulas.net/Weighted_Average.html
weighted average sales price
The average weighted sales price is $130. The weighted average selling price is $130.