A company has an inventory of 1,400 assorted parts for a line of missiles that has been discontinued. The inventory cost is $74,000. The parts can be either (a) remachined at total additional costs of $ 25,500 and then sold for $32,000 or (b) sold as scrap for $2,000. 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 $18,000 cash and replaced with a similar truck costing $102,500 or (b) rebuilt for $85,500, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations.