a. Erik has 300 rolls of camera film that have become obsolete with the advent of digital cameras. The films cost $3.30 each and are normally sold for $6.60. To clear out these old films, Erik will drop their selling price to $1.98. There are no related selling costs. p. Erik has four cameras in stock that have been used as demonstration models. The cameras cost 5760 and normally sell for $960. Because these cameras are in used condition, Erik has set the selling price at $720 each. Expected selling costs are $20 per camera. New models of the camera, already on order, will cost Erik $800 and will sell for $1,040. Final inventory value

a. Erik has 300 rolls of camera film that have become obsolete with the advent of digital cameras. The films cost $3.30 each and are normally sold for $6.60. To clear out these old films, Erik will drop their selling price to $1.98. There are no related selling costs. p. Erik has four cameras in stock that have been used as demonstration models. The cameras cost 5760 and normally sell for $960. Because these cameras are in used condition, Erik has set the selling price at $720 each. Expected selling costs are $20 per camera. New models of the camera, already on order, will cost Erik $800 and will sell for $1,040. Final inventory value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6) The Stuart Smalley Corporation has 1,000 cases of self-help magazines that were printed at a cost of $26,600. The magazines can be sold as is for $30,320. However, the magazines can be repurposed further into self-help coffee table books at an additional cost of $12,525 and be sold at a price of $46,350. The incremental income (loss) from repurposing the magazines into coffee table books would be:
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