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Car Components has an inventory of 490 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $78,400. Production supervisor Leo
Car Components has an inventory of 490 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $78,400. Production supervisor Leo Johns must decide to do one of the following Process the inventory further at a cost of $25,000, with the expectation of selling it for $31,000 Scrap the inventory for a sales price of $4,000 What should Johns do? Present figures to support your decision. Prepare the Sell or Process Further analysis. (Enter a "0" for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) ncremental Analysis Sell of Process Further Decision Sell As Is Process (Scrap Further Difference Revenues Less: Extra cost of processing further Net benefit (loss) to operating income Johns should because processing further will operating income by S
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