Vistakon, the maker of acuvue brand contact lenses, is working on a new product launch. they are best known for their acuvue 2 contact lenses, but are planning to launch acuvue 3, which will provide 40% more moisture than acuvue 2. the extra moisture will make the lenses more comfortable and cause less irritation. vistakon has been in the new product planning process for a year. currently, they are trying to determine the cannibalization rate of acuvue 3. they believe that 30% of acuvue 3 sales will come from acuvue 2. which stage of the new product planning process are they in?

Example1 lcnrv: ted company uses the lower of cost or nrv method in valuing its inventory items. the inventory at december 31, 2017, consists of products a, b and c, each having 1,000 units. relevant unit data for these products appear below: item a item b item c cost $ 80 $80 $80 estimated selling price 180 100 90 estimated selling cost 30 30 30 required: using the lower of cost or net realizable value rule, determine the proper value of inventory for balance sheet reporting purposes at december 31, 2017. prepare any necessary journal entry. apply the lower of cost or nrv method: • on an individual inventory basis; • on a group basis; • on a total inventory basis. solution worksheet: inventory (on an individual basis): inventory value item nrv cost lc- item a item b item c total inventory (on a group basis): inventory value item nrv cost lc- group 1 (item a and b) group 2 (item c) total inventory (on an aggregate inventory basis): inventory value item nrv cost lc- total inv