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Carson Company's Market for the Model a Has Changed Significantly,and

Question 95

Multiple Choice

Carson Company's market for the Model A has changed significantly,and Carson has had to drop the price per unit from $265 to $125.There are some units in the work in process inventory that have costs of $150 per unit associated with them.Carson could sell these units in their current state for $100 each.It will cost Carson $10 per unit to complete these units so that they can be sold for $125 each.
Based on the information about Carson,which of the following is not considered a relevant value for this problem?


A) $10 = cost to complete units
B) $125 = current price
C) $265 = former price
D) $100 = price for partially completed units

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