Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer the following questions. 1. A company has an inventory of 1,300 assorted parts for a line of missiles that has been discontinued. The inventory
Answer the following questions. 1. A company has an inventory of 1,300 assorted parts for a line of missiles that has been discontinued. The inventory cost is $78,000. The parts can be either (a) remachined at total additional costs of $26,000 and then sold for $32,000 or (b) sold as scrap for $6,500. Which action is more profitable? Show your calculations. 2. A truck, costing $100,500 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 $101,000 or (b) rebuilt for $82,000, 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 1,300 assorted parts for a line of missiles that has been discontinued. The inventory cost is $78,000. The parts can be either (a) remachined at total additional costs of $26,000 and then sold for $32,000 or (b) sold as scrap for $6,500. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Action is more profitable. 2. A truck, costing $103,000 and operating characteristics and loo Action is less costly
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started