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Snowcat [4.5K]
3 years ago
8

Data related to the inventories of Costco Medical Supply are presented below:

Business
1 answer:
Lerok [7]3 years ago
7 0

Answer:

146

Explanation:

The computation is shown below

<u>Particulars       Surgical         Surgical     Rehab                Rehab    </u>

<u>                         Equipment    Supplies    Equipment        Supplies</u>

Cost (A)              151                    103            256                    153

Selling price       272                  135            342                    153

Less:

cost to sell            18                   10                 18                    7

Net realizable

value (B)                254             125                   324             146

<u>Lower of A & B     151                 103                256                146</u>

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Answer:

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6                        $35,000                                  $40,000

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The payback period is between year 4 and 5:

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