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1,11111111 Requirement 2. A truck costing $101,500 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for

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Requirement 2. A truck costing $101,500 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for $14,000 cash and replaced with a similar truck costing $103,000 or (b) rebuilt for $88,000, and, thus, be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Replace Rebuild Deduct: Total cost Action is less costly by $Answer the following questions. 1. A company has an inventory of 1,350 assorted parts for a line of missiles that has been discontinued. The inventory cost is $72,000. The parts can be either (a) remachined at total additional costs of $24,500 and then sold for $33,500 or (b) sold as scrap for $3,500. Which action is more profitable? Show your calculations. 2. A truck costing $101,500 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for $14,000 cash and replaced with a similar truck costing $103,000 or (b) rebuilt for $88,000, and, thus, be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. Requirement 1. A company has an inventory of 1,350 assorted parts for a line of missiles that has been discontinued. The inventory cost is $72,000. The parts can be either (a) remachined at total additional costs of $24,500 and then sold for $33,500 or (b) sold as scrap for $3,500. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Remachine Scrap Deduct: Operating income Action V is more profitable by $]. Requirement 2. A truck costing $101,500 and uninsured is wrecked on its first day in use. It can be either (a) disposed of for $14,000 cash and replaced with a similar truck costing $103,000 or (b) rebuilt for $88,000, and, thus, be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.)

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