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] Answer the folloWing questions 1. A company has an inventory of'i 050 assorted pans for a line of missiles that has been discontinued The

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Answer the folloWing questions 1. A company has an inventory of'i 050 assorted pans for a line of missiles that has been discontinued The inventory cost is $7,000 The parts can be either (a) remachihed at tbtal additional costs 0151928000 and then sold for $30000 or (b) sold as scrap for $4000 Which action is more profitable? Show your calculations 2. A truck. costing $102 000 and uninsured is wrecked its first day in use. ll can be eilher (a) disposed of for $l7.000 cash and replaced With a similar truck cosling $105500 or (b) rebuilt for $88,000 and thus be brandrnew as far as operating characteristics and looks are concerned Which action is less costly? Show your calculations 'l.A company has an inventory of l '050 assorted parts for a line of missiles that has been discontinued The inventory cost is 579000 The parts can be either (a) remachined at total additional costs of 528,000 and then sold for 530000 or (b) sold as scrap for 4000 Which action is more profitable? Show your oalculations, (Only complete the necessary answer boxes) (at lb] Remachine Scrap (l) Deduct (2) Operating income Action (3) is more profitable 2. A truck, costing $l02'000 and uninsured is wrecked its first day in use it can be either (a) disposed of for $17,000 cash and replaced with a similar truck costing 5105 500 or (b) rebuilt for 588 000 and thus be brandenew as far as operating characteristics and looks are concerned Which action is less costly? Show your calculations (Only complete the necessary answer boxes ) (at [b] \\ Replace Rebuild (4) Deduct (5) (5) Toal relevant costs Action (7') is less costly. (1) O (2) O (3) O (D) (4) O (5) O (5) O (7) O (a) 0 Future costs 0 Future costs 0 (a) O Currentdisposal price of eXisting truck 0 Current disposal price of existing truck 0 Current disposal price ofemsting truck 0 (b) 0 Future revenues 0 Future revenues 0 New truck 0 New truck 0 Original cost of truck 0 Inventory cost 0 inventory cost 0 Original cost of truck 0 Original cost oftruck O Rebuild existing truck

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