(Table: Customer Valuations for Lawn Services I) the Table Shows

question 35

Multiple Choice

(Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services. The marginal cost of lawn cutting is $400, and the marginal cost of fertilizing is $200.
Suppose the lawn service bundles its Lawn Cutting and Fertilizing. In this case, the price for the bundle should be $____.

• A) 800
• B) 900
• C) 1,250
• D) 1,200

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs necessary to make the sale.

Inventory Purposes

The reasons for keeping stock of goods in a business, typically for sale, production, or avoiding stockouts.

Direct Costs

Expenses that can be directly traced to a product or service, such as materials and labor.

Inventory Costing Methods

Refers to the techniques used to determine the value of an inventory, including LIFO (Last In, First Out), FIFO (First In, First Out), and weighted average methods.