A company has an inventory of assorted parts for a line of missiles that has been discontinued. The inventory cost is . The parts can be either (a) remachined at total additional costs of and then sold for or (b) sold as scrap for . Which action is more profitable? Show your calculations.

1. Answer the following questions, A company has an inventory of 1,100 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 $28,000 and then solo or (b) sold as scrap for $2,000. Which action is more profitable? Show your calculations. 2. A truck, costing $102,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $14.000 cash and replaced with a similar truck costing $102,500 or (b) rebuilt for $89,500, and thus be brand-new operating characteristics and looks are concerned. Which action is less costly? Show your calculations. 1. A company has an inventory of 1,100 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 $28,000 and then sold for $3 sold as scrap for $2,000. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Remachine Scrap Future costs Future revenues Inventory cost 2. A truck, costing $102,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $14,000 cash and replaced with a similar truck costing $102,500 or (b) rebuilt for $89,500 and thus be brand-new as far a characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Replace Rebuild Deduct The Panther Corporation is working at full production capacity producing 11,000 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is: (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,500 units of Stronglast, modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther 541 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to Panther of producing the 3,500 units of Stronglast? (Assume that no overtime is worked.) Determine the formula for calculating the opportunity cost, then calculate the opportunity cost of producing the 3,500 units of Stronglast. = Opportunity cost ( Requirement 2. The Chesapeake Corporation has offered to produce 3,500 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 7,500 units of Everlast and 3,500 units of Stronglast and purchase 3,500 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Apex offer? Show your calculations. Panther is considering manufacturing 7,500 units of Everlast and 3,500 units of Stronglast and purchasing 3,500 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. Begin by completing the following table for manufactured Stronglast units and purchased Everlast units. Manufacture Stronglast Purchase Everlast Total selling units On the basis of financial considerations alone, Panther should the Chesapeake offer. Requirement 3. Suppose Panther had been working at less than full capacity, producing 7,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions. (Ignore the previous 541 selling price.) 1. Answer the following questions, A company has an inventory of 1,100 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 $28,000 and then solo or (b) sold as scrap for $2,000. Which action is more profitable? Show your calculations. 2. A truck, costing $102,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $14.000 cash and replaced with a similar truck costing $102,500 or (b) rebuilt for $89,500, and thus be brand-new operating characteristics and looks are concerned. Which action is less costly? Show your calculations. 1. A company has an inventory of 1,100 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 $28,000 and then sold for $3 sold as scrap for $2,000. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Remachine Scrap Future costs Future revenues Inventory cost 2. A truck, costing $102,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $14,000 cash and replaced with a similar truck costing $102,500 or (b) rebuilt for $89,500 and thus be brand-new as far a characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Replace Rebuild Deduct The Panther Corporation is working at full production capacity producing 11,000 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is: (Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Panther to produce 3,500 units of Stronglast, modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Panther 541 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to Panther of producing the 3,500 units of Stronglast? (Assume that no overtime is worked.) Determine the formula for calculating the opportunity cost, then calculate the opportunity cost of producing the 3,500 units of Stronglast. = Opportunity cost ( Requirement 2. The Chesapeake Corporation has offered to produce 3,500 units of Everlast for Panther so that Panther may accept the Apex offer. That is, if Panther accepts the Chesapeake offer, Panther would manufacture 7,500 units of Everlast and 3,500 units of Stronglast and purchase 3,500 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. On the basis of financial considerations alone, should Panther accept the Apex offer? Show your calculations. Panther is considering manufacturing 7,500 units of Everlast and 3,500 units of Stronglast and purchasing 3,500 units of Everlast from Chesapeake. Chesapeake would charge Panther $38 per unit to manufacture Everlast. Begin by completing the following table for manufactured Stronglast units and purchased Everlast units. Manufacture Stronglast Purchase Everlast Total selling units On the basis of financial considerations alone, Panther should the Chesapeake offer. Requirement 3. Suppose Panther had been working at less than full capacity, producing 7,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Panther should accept for Stronglast under these conditions. (Ignore the previous 541 selling price.)