The Everything Store has just removed a demonstrator from display and demonstration-it will be sold at a reduced price.The original price was $180 and the original cost was $140.Additional information: $\begin{array} { l }
\text {Estimated repairs before selling. }&\$20\
\text {Estimated selling price reduced to. }&120\
\text {Estimated selling costs. }&7\
\text {Normal profit margin. }&1/3\
\end{array}$
The demonstrator will be included in the used inventory balance.What inventory value should be assigned to the used demonstrator?
A)$73
B)$80
C)$93
D)$120

Question

The Everything Store has just removed a demonstrator from display and demonstration-it will be sold at a reduced price.The original price was $180 and the original cost was $140.Additional information: $\begin{array} { l  } 
 \text {Estimated repairs before selling.  }&\$20\
 \text {Estimated selling price reduced to. }&120\
 \text {Estimated selling costs. }&7\
 \text {Normal profit margin. }&1/3\
\end{array}$
 The demonstrator will be included in the used inventory balance.What inventory value should be assigned to the used demonstrator?
A)$73
B)$80
C)$93
D)$120

Quizplus · Accepted Answer

The Answer of The Everything Store has just removed a demonstrator from display and demonstration-it will be sold at a reduced price.The original price was $180 and the original cost was $140.Additional information: $\begin{array} { l  } 
 \text {Estimated repairs before selling.  }&\$20\
 \text {Estimated selling price reduced to. }&120\
 \text {Estimated selling costs. }&7\
 \text {Normal profit margin. }&1/3\
\end{array}$
 The demonstrator will be included in the used inventory balance.What inventory value should be assigned to the used demonstrator?
A)$73
B)$80
C)$93
D)$120

The Everything Store Has Just Removed a Demonstrator from Display