Bright Toys Inc. has 800 units of a toy car in inventory. Each unit has a cost of $12.50, but due to market changes, the replacement cost is now $10.20. The expected selling price per unit is $13.00, with estimated costs of completion and disposal totaling $2.00 per unit. What is the Net Realizable Value (NRV) per unit?

Bright Toys Inc. has 800 units of a toy car in inventory. Each unit has a cost of $12.50, but due to market changes, the replacement cost is now $10.20. The expected selling price per unit is $13.00, with estimated costs of completion and disposal totaling $2.00 per unit. What is the Net Realizable Value (NRV) per unit?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10MC

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