# (Relative Sales Value Method) Phil Collins Realty Corporation purchased a tract of unimproved land for \$55,000.  This land was improved and subdivided into building lots at an additional cost of \$34,460.00.  These building lots were all the same size but owing to differences in location were offered for sale at different prices as follows:Group                               # of lots                 Price per lot1                                        9                             \$3,0002                                        15                           \$4,0003                                        17                            \$2,400Operating expenses for the year alloted to this project total \$18,200.  Lots unsold at the year-end were as follows:Group 1  5 lotsGroup 2  7 lotsGroup 3  2 lotsInstructions- at the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date.

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(Relative Sales Value Method) Phil Collins Realty Corporation purchased a tract of unimproved land for \$55,000.  This land was improved and subdivided into building lots at an additional cost of \$34,460.00.  These building lots were all the same size but owing to differences in location were offered for sale at different prices as follows:

Group                               # of lots                 Price per lot

1                                        9                             \$3,000

2                                        15                           \$4,000

3                                        17                            \$2,400

Operating expenses for the year alloted to this project total \$18,200.  Lots unsold at the year-end were as follows:

Group 1  5 lots

Group 2  7 lots

Group 3  2 lots

Instructions- at the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date.

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Step 1

Compute the total cost per lot.

Step 2
Step 3

Compute the cost associated with ...

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