I need to determine the weighted average price per ounce for Potatoe
Chips. I am not sure if I should use the package size x suggested
retail price or if I should use size x suggested retail price/selling
price to retailer. Your help is greatly needed.   Here is the snacks
price list:

Package size          Suggested Retail Price        Selling Price to Retailer
2-1/4 ounce            $0.69                        $0.385
7 ounce                $1.69                        $1.240
11 ounce               $2.39                        $1.732
And this is the question:  Calculate the weighted price per ounce for Potatoe Chips.

Dana3 --

I'm not surprised at your question: you have the wholesale price and
the consumer price.  As a result, there are TWO weighted average
prices -- one from the wholesaler and one to the consumer (assuming no
discounting or bundled pricing of chips).

This is identical to the difference between two government measures --
the Consumer Price Index and the Producer Price Index.  The PPI used
to be called the "wholesale price index" but wholesalers wanted the
blame for inflation put on manufacturers, so asked the U.S. Bureau of
Labor Statistics to be "politically correct" and change the name:
Investorwords.com
CPI
http://www.investorwords.com/1062/Consumer_Price_Index.html

Producer Price Index
http://www.investorwords.com/3873/Producer_Price_Index.html

But let's get to the answer(s) here.  One assumption: that each of the
packages sells in equal volumes -- an assumption that economists for
the BLS would be careful to check out before assuming that potato chip
prices had risen simply because prices in the smallest size had
changed.

WEIGHTED AVERAGE PRICE/OUNCE: CONSUMER

TOTAL OUNCES: 2.25 + 7 + 11 = 20.25 oz.
TOTAL COST: $4.77

WAP/OUNCE: $4.77/20.25 = $0.236/oz.


WEIGHTED AVERAGE PRICE/OUNCE: WHOLESALE

TOTAL OUNCES: 20.25 oz.
TOTAL COST: $3.357

WAP/OUNCE: $3.357/20.25oz. = $0.166/oz.


Best regards,

Omnivorous-GA

Exactly what I needed.  Thank you so much!

The question does not give enough information to determine whether the
asker is looking for retail or wholesale weighted average price. 
Therefore there is no "right" answer.  However, the retail weighted
average price is (.69+1.69+2.39)/(2.25+7+11)=$.236 and the wholesale
weighted average prices is (.385+1.24+1.732)/(2.25+7+11)=$.166.

The official answer looks remarkably similar to the comment left half an hour prior.