Remington Company Sells Product 1976NLC for $40 Per Unit

question 26

Multiple Choice

Remington Company sells product 1976NLC for $40 per unit.The cost of one unit of 1976NLC is $36, and the replacement cost is $34.The estimated cost to dispose of a unit is $8, and the normal profit is 40%.At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market?

• A)$16.
• B)$32.
• C)$34.
• D)$36.

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Definitions:

Intellectual Inferiority

refers to the perception or belief that certain individuals or groups have lower cognitive abilities compared to others.

Step-variable

Costs that remain fixed over small ranges of production or activity levels but can change with larger shifts in activity.

Mixed

A category that includes a combination of various elements or types.

Variable

An element, feature, or factor that is liable to vary or change.