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Can someone help me understand how to find by how much does this decision increase NRV? ( I do not need the NRV) As a
Can someone help me understand how to find by how much does this decision increase NRV? ( I do not need the 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 Quantity (in Total Variable Sales Price Product per mower mowers) per mower Processing Costs (Uncustomized) (Customized) RYOBI 20 $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. Sell as-is Process further Product (Uncustomized) (Customized) RYOBI 5980 5100 9,975 11,500 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 thisStep by Step Solution
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