2.3

need done asap

Cobe Company has manufactured 210 partially finished cabinets at a cost of $52,500. These can be sold as is for $63,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,600, and the finished cabinets could be sold for $84,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $49,400 or reworked for $85,500 and then sold for $150,100. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them