Carson Company’s market for the Model A has changed significantly, and Carson ha

Question

Carson Company’s market for the Model A has changed significantly, and Carson has had to drop the price per unit from $265 to $125. There are some units in the work in process inventory that have costs of $150 per unit associated with them. Carson could sell these units in their current state for $100 each. It will cost Carson $10 per unit to complete these units so that they can be sold for $125 each.

Based on the information about Carson, which of the following is not considered a relevant value for this problem?

Explanation / Answer

265 = former price is not considered a relevant value for this problem because it doesnot make company more or less profitable.

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