Question
Hope Ltd holds an asset that is traded in three different markets: Adelaide, Brisbane, and Perth. Hope Ltd normally trades in Perth. Some information gathered
Hope Ltd holds an asset that is traded in three different markets: Adelaide, Brisbane, and Perth. Hope Ltd normally trades in Perth. Some information gathered in relation to these three markets is as follows.
|
| Adelaide | Brisbane | Perth |
| Annual volume | 60,000 | 24,000 | 12,000 |
| Price per unit | $200 | $192 | $212 |
| Transportation cost per unit | $12 | $12 | $16 |
| Transaction cost per unit | $4 | $8 | $8 |
What is the fair value of the unit - is the quanity sold taken into cosnideration or is it the per unit cost ?
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International Business
Authors: Ricky W. Griffin, Michael W. Pustay
9th Edition
013489877X, 978-0134898773
