Question

Determine the total value of the merchandise using net realizable value. item quantity selling price commission doll 10 $7 $2 horse 5 9 3 $115 $35 $25 $80

Answer 1

Quantity of dolls and horses are 10 and 5 respectively .

Selling prices of dolls and horses are $7 and $ 9 respectively .

And the commission on them are $2 and $ 3 respectively .

So net price = 10*(7-2) + 5(9-3) = 10+5 + 5*6 = 50+30 = 80

So the total value of the merchandise using net realizable value is $ 80. Therefore out of the given options, correct option is the last option .

Answer 2

Answer:

The correct option is 4.

Step-by-step explanation:

The given data table is

Item            quantity            selling price            commission

Doll                   10                       $7                       $2

Horse                 5                       $9                       $3

Total value of the merchandise using net realizable value is

Total value of the merchandise = Selling price -  Commission

The value of the merchandise using net realizable value for doll is

$10(7-2)=10(5)\Rightarrow \ 50$

The value of the merchandise using net realizable value for horse is

$6(9-3)=5(6)\Rightarrow \ 30$

Total value of the merchandise using net realizable value is

$Total=\ 50+\ 30=\ 80$

Therefore the correct option is 4.