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A company has an inventory of 1, 050 assorted parts for a line of missiles that has been discontinued. The inventory cost is $71,000. The
A company has an inventory of 1, 050 assorted parts for a line of missiles that has been discontinued. The inventory cost is $71,000. The parts can be either (a) remachined at total additional costs of $26,000 and then sold for $30, 500 or (b) sold as scrap for $4,000. Which action is more profitable? Show your calculations. A truck, costing $103, 500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $15, 500 cash and replaced with a similar truck costing $106,000 or (b) rebuilt for $88, 500, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. A company has an inventory of 1, 050 assorted parts for a line of missiles that has been discontinued. The inventory cost is $71,000. The parts can be either (a) remachined at total additional costs of $26,000 and then sold for $30.500 or (b) sold as scrap for $4,000. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) Deduct Operating income
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