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Answer the following questions 1. A company has an inventory of 1,150 assorted parts for a line of missiles that has been discontinued. The inventory
Answer the following questions 1. A company has an inventory of 1,150 assorted parts for a line of missiles that has been discontinued. The inventory cost is $75,000. The parts can be either (a) remachined at total additional costs of $27,500 and then sold for $31,500 or (b) sold as scrap for $6,500. Which action is more profitable? Show your calculations. A truck, costing $104,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,000 cash and replaced with a similar truck costing $103,500 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. 2. 1. A company has an inventory of 1,150 assorted parts for a line of missiles that has been discontinued. The inventory cost is $75,000. The parts can be either (a) remachined at total additional costs of $27,500 and then sold for $31,500 or (b) sold as scrap for $6,500. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Remachine Scrap Deduct: Operating income Action is more profitable. 2. A truck, costing $104,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,000 cash and replaced with a similar truck costing $103,500 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. (Only complete the necessary answer boxes.) (b) (a) Replace Rebuild Deduct: Toal relevant costs Action is less costly
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