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Can someone help me understand how to find by how much does this decision increase NRV? ( Is not $645 or $880) Scenario Would ya
Can someone help me understand how to find by how much does this decision increase NRV? ( Is not $645 or $880)
Scenario Would ya lookee there! You have uncovered two ways to increase the profitability of the lawn mower division. Not a bad return for 40 minutes work. Even still, there is one more potential way to maximize 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. Given their offers, should the Lawn Mower division consider customizing lawn mowers for existing customers? 0 Input What type of decision is Jake requesting? Joint Costing Total Variable Processing Costs Additional information: Sales Price Quantity (in Product per mower mowers) (Uncustomized) RYOBI 20 $299 Honda 25 $399 Select the relevant information that will be included in your analysis. Sales Price per mower (Customized) $330 $500 $1,500 $1,000 Joint Costs of $20,000 Exclude Quantity (in mowers) Include Sales Price per Liter (Uncustomized) Include Total Variable Processing Costs Include Sales Price per Mower (Customized) Include Process Process Calculate the NRV under each scenario. Helpful Hint Product Sell as-is Process further (Uncustomized) (Customized) $5,980P 95.100 This value is calcu RYOBI IC Honda $9,975 | 811 500 Output What is your recommendation to Jake? RYOBI Sell Asi Honda Process Funt By how much does this decision increase NRV? $17.480/Step by Step Solution
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