Question

Babal Inc. is a wholesaler of electronics. It purchased 1,200 units of Product X for

800 per unit. At year end, it had 200 units on hand and due to changes in technology, the selling price will have to be reduced in order to sell them. The value of each unit of Product X for the year-end inventory presentation should be:

Select one:
a.
280
c.
520

Answer 1

The value of each unit of Product X for the year-end inventory presentation cannot be determined based on the given information.

Step-by-step explanation:

To determine the value of each unit of Product X for the year-end inventory presentation, we need to calculate the cost per unit. Babal Inc. purchased 1,200 units of Product X for $800 per unit.

At the year end, they had 200 units on hand. Since the selling price needs to be reduced, we can assume that the cost per unit will be lower than the purchase price.

However, we do not have enough information to calculate the exact value of each unit.

Therefore, neither option A. $280 nor option C. $520 can be determined based on the given information.