*Net Realizable Value = Current Sales Price x Percentage sold in Quarter x Quarter's Average Price 1st quarter 2nd quarter 3rd quarter 4th quarter $110,000 x x 97.5% $110,000 x x 92.5% $110,000 x x 87.5% $110,000 x x 82.5% Net Realizable Value Less: Normal profit margin Net Realizable Value - Normal profit margin s 37,537.50 30,525.00 24,062.50 9 075.00 $101,200.00 25 300.00 s 75,900.00 The above calculation assumes that sales occur evenly throughout each quarter. **lf a 50% profit margin is assumed the computation becomes $130,000 - (.50 x $130,000) = $97,500 *Net Realizable Value = Current Sales Price x Percentage sold in Quarter x Quarter's Average Price 1st quarter 2nd quarter 3rd quarter 4th quarter $110,000 x x 97.5% $110,000 x x 92.5% $110,000 x x 87.5% $110,000 x x 82.5% Net Realizable Value Less: Normal profit margin Net Realizable Value - Normal profit margin s 37,537.50 30,525.00 24,062.50 9 075.00 $101,200.00 25 300.00 s 75,900.00 The above calculation assumes that sales occur evenly throughout each quarter. **lf a 50% profit margin is assumed the computation becomes $130,000 - (.50 x $130,000) = $97,500