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    Relative Sales Value Method

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    Toms River Developers purchased land for $1 million that can be divided into 800 lots.

    These lots are of different sizes and shapes and are sorted into three groups: A, B, and C.

    Calculate the cost per lot utilizing the relative sales value method from the information below.

    Lots Number of Lots Sales Price Per Lot

    A 200 $5,000
    B 200 $3,000
    C 400 $2,250

    © BrainMass Inc. brainmass.com October 9, 2019, 10:20 pm ad1c9bdddf
    https://brainmass.com/business/accounting/relative-sales-value-method-216638

    Solution Summary

    Relative sales value methods are determined for different size and shape lots. The cost per lot utilizing the relative sales value method is determined.

    $2.19