company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current FIFO inver onsists of 200 units purchased at $16 per unit. Net realizable value has now fallen to $13 per unit. What is the amount of the lower cost of m djustment the company must make as a result of this decline in value? Multiple Choice $1,000. $1,400. $400. $800.

company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current FIFO inver onsists of 200 units purchased at $16 per unit. Net realizable value has now fallen to $13 per unit. What is the amount of the lower cost of m djustment the company must make as a result of this decline in value? Multiple Choice $1,000. $1,400. $400. $800.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lablanc Inc. sells a product for $91 per unit. The variable cost is $63 per unit, while fixed costs are $232,064. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $100 per unit fill in the blank 2 units
Radison Inc. sells a product for $52 per unit. The variable cost is $26 per unit, while fixed costs are $137,904. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $60 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $60 per unit fill in the blank 2 units
please do not provide hand written answer
Please help me with show all calculation thanku
Sunland Company sells product 2005WSC for $125 per unit. The cost of one unit of 2005WSC is $122, and the replacement cost is $121. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market? $121. $122. $69. $119.
Ignore income taxes for this problem. A firm currently sells 25 units for $12 each. Its variable cost per unit is $9 and fixed costs total $60. The firm determines it can sell 35 units if it decreases the selling price from $12 to $11 per unit. The firm should Select one: a. Decrease the sales price because it will increase profits by $5. b. Not decrease the sales price because it will decrease profits by $10. c. Not decrease the sales price because it will decrease profits by $5. d. Decrease the sales price because it will increase profits by $10.
Current Attempt in Progress Your answer is partially correct. Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs $ Net income $ Reject $ $ Should Cullumber Company accept the special order? Cullumber company should accept V the special order. Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000
1. Bramble corp. plans to…
Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit is $80 per unit, whereas the total fixed costs are $150,000. The company is considering the increase this year targeted profit to $250,000. What is the company's margin of the safety? Select one: a. The margin of the safety is $450,000 b. The margin of the safety is $630,000 c. The margin of the safety is $270,000 d. The margin of the safety is $180,000
Hilton Inc. sells a product for $94 per unit. The variable cost is $63 per unit, while fixed costs are $142,228. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $100 per unit fill in the blank 2 units
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit. If the company cannot cut costs any lower than they already are, the profit margin on sales to meet the market selling price would be a.10.3% b.7.3% c.8.3% d.9.3%
Sell to enjoy Break Even? O#3(A) Break -Even Analysis :- Crescent Limited Sells two Car models, Sport and Deluxe The Prices and costs of the two polew Spoat 1Deluxe Average Selling poice Less: Average Voniable Costs $25,000 20,000 $35,000 25,000 Avesage Conlribulion Mongin pes Onit $5,000 $10,000 Fixed Costs are Averoge monthly 24300,000 The Company is willing to assume that the models will Sell in Sport ard Delixe 3:1 Ratio (2ला Required : How many Units cof Spoil an Delure Cars Crescent Limiled has Sell to enjoy vesipy your Solutuon by making Stalement. to Break-Even income