Because Commissions Are a Large Component in Selling Costs for a Firm,cost

question 129

Essay

Because commissions are a large component in selling costs for a firm,cost of disposal averages 20 percent of selling price.Historical data has revealed the normal profit margin of the company has averaged 10 percent of sales.Per unit cost and selling price,for five different kinds of inventory items are given below.The five cases are independent.Under lower-of-cost-or-market,fill in the proper reported value of a unit of the inventory for each of the five cases: $$\begin{array} { | l | r | r| r |r |r| } \hline & 1 & 2 & 3 & 4 & 5 \\\hline \text { Units cost............... } & \$ 70 & \$ 100 & \$ 160 & \$ 230 & \$ 90 \\\hline \text { Selling price............ } & 100 & 120 & 200 & 300 & 100 \\\hline \text { Replacement cost......... } & 68 & 94 & 172 & 220 & 88 \\\hline \text { Inventory value........... } & & & & & \\\hline\end{array}$$

---

Definitions:

Psychologically Addicted

describes a condition where an individual feels a compelling psychological, but not physical, need to continue using a substance or engaging in behavior.

Nutritional Deficiencies

Conditions that arise from the lack of essential nutrients in the diet, leading to various health problems.

Genetic Factors

Hereditary elements in an organism's DNA that contribute to its physical and behavioral traits, including susceptibility to certain diseases or conditions.

Social Drinker

An individual who consumes alcoholic beverages in moderation and typically in social settings without dependency.