Hayes Co is considering selling off one of its subsidiaries, Fran Ltd., and would like to value its inventory of 1500 large storage boxes. The following information has been made available: Market North Midlands South Sales price per unit £85 £90 £82 Volume of sales of Fran Ltd 4,000 8,000 3,000 Volume of Transaction costs per sales of storage boxes storage box 100,000 64,000 N/A £5 £3 £8 Transportation costs per storage box Required: Comment on whether this is appropriate given the circumstances. £3 £7 £6 Hayes is suggesting that the fair value per unit of storage box should be £82.

Hayes Co is considering selling off one of its subsidiaries, Fran Ltd., and would like to value its inventory of 1500 large storage boxes. The following information has been made available: Market North Midlands South Sales price per unit £85 £90 £82 Volume of sales of Fran Ltd 4,000 8,000 3,000 Volume of Transaction costs per sales of storage boxes storage box 100,000 64,000 N/A £5 £3 £8 Transportation costs per storage box Required: Comment on whether this is appropriate given the circumstances. £3 £7 £6 Hayes is suggesting that the fair value per unit of storage box should be £82.

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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