Ivanhoe Company sells product 1976 NLC for $25 per unit. The cost of one unit of 1976 NLC is $23, and the replacement cost is $22. The estimated cost to dispose of a unit is $5, and the normal profit is 20% of selling price. At what amount per unit should product 1976 NLC be reported, applying lower-of-cost-or-market

The product should be reported at $20

Explanation:

The formulae for net realizable value is given as ;

Net realizable value = Estimated selling price - Cost of completion and disposal

= $25 - $5

= $20

But,

The upper limit of Market = Net realizable value = $20

Market = Replacement cost = $22

Hence,

Lower limit of market = Net realizable value - Normal profit margin

Lower limit of market = $20 - ( 20% × 25 )

= $20 - $5

= $15

It therefore means that if the present replacement cost is higher than the selling price, it then means that the selling amount is the market amount.

The product should therefore be reported at $20

answerpounds of plastic to purchase 200+60-20=(240);

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.