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Assume in each case that the selling expenses are $8 per unit and that normal profit is $5 per unit. Calculate the limits in each case. Then enter the amount that should be used for lower or cost or market.

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Assume in each case that the selling expenses are $8 per unit and that normal profit is $5 per unit. Calculate the limits in each case. Then enter the amount that should be used for lower or cost or market.

Selling price Upper Limit Replacement cost Lower limit Cost LCM

a) $54 ? $38 ? $43 ?
b) $47 ? $ 36 ? $40 ?
c) $56 ? $39 ? $40 ?
d) $47 ? $42 ? $40 ?

Please show all work.

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Solution Summary

Desired amounts shown.

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