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BAR Ltd has 300 lampshades on hand, which are now considered to be out of fashion. They cost 3.87 to make originally. A customer has
BAR Ltd has 300 lampshades on hand, which are now considered to be out of fashion. They cost 3.87 to make originally. A customer has offered to buy them for 2.00 each but BAR Ltd. would have to pay total delivery costs of 100. Alternatively the lampshades could be reworked into a more fashionable style for a cost of 0.68 per shade. These shades could then be sold for 4.00 if the company spent a total of 150 on selling and distribution costs. The lampshades should be stated in the annual accounts at a value of: |
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