.	A company has an inventory of 1,350 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 $28,000 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 $100,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $14,500 cash and replaced with a similar truck costing $105,000 or (b) rebuilt for $87,000, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations.

1. A company has an inventory of

1,350

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

$28,000

and then sold for

$33,500

or (b) sold as scrap for

$ 3 comma 500$3,500.

Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.)

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		(a)	(b)
		Remachine	Scrap
Deduct:
Operating income