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Answer the following questions. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventory cost
Answer the following questions. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventory cost is S74,000. 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 $8,500. Which action is more profitable? Show your calculations. A truck, costing S100,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $15,000 cash and replaced with a similar truck costing $103,500 or (b) rebuilt for $85,000 operating characteristics and looks are concemed. Which action is less cosly? Show your calculations 1 2 Ithus be brand-new as far as 1. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventtory cost is S74,000. 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) Remachine Scrap Deduct: Operating income is more profitable. Action 2. A truck, costing S100,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for S15,000 cash and replaced with a similar truck costing S103,500 or (b) rebuit for $85,000 and thus be brand-new as far as operating characteristics and looks are concemed. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Rebuild Replace Deduct: Toal relevant costs is less costly Action Choose from any list or enter any number in the input fields and then continue to the next quastion
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