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By how much does this decision increase NRV? As a reminder, there is one more potential way to maximize the profitability of the Lawn Mower
By how much does this decision increase NRV?
As a reminder, there is one more potential way to maximize the profitability of the Lawn Mower division. Green Lawn Corp's marketing team has discovered that some of their existing customers would be willing to pay a little extra for branding on the lawn mowers. Up to this point, the unbranded lawn mowers incurred $20,000 in costs. Information on the revenue and costs related to customizing the RYOBI and Honda lawn mowers are as follows: Sales Price Sales Price Quantity (in Total Variable Product per mower per mower mowers) (Uncustomized) Processing Costs (Customized) RYOBI $299 $1,500 $330 Honda 25 $399 $1,000 $500 Calculate the NRV under each scenario. Round to the nearest whole number and do not use decimals. 20 Sell as is Process further Product (Uncustomized) (Customized) RYOBI Honda For each product, note the scenario that maximizes net realizable value. You will report your findings to your manager in the next step after reviewing the feedback for this
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