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A company has an inventory of 1 , 1 5 0 assorted parts for a line of missiles that has been discontinued. The inventory cost

A company has an inventory of 1,150 assorted parts for a line of missiles that has been discontinued. The inventory
cost is $76,000. The parts can be either (a) remachined at total additional costs of $27,500 and then sold for $34,000
or (b) sold as scrap for $5,000. Which action is more profitable? Show your calculations. (Only complete the necessary
answer boxes.)
(a)
(b)
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