Answered step by step
Verified Expert Solution
Question
1 Approved Answer
. Car Components has an inventory of 525 obsolete remote-entry keys that are carried in inventory at a manufacturing cost of $86,100. Production supervisor Laura
. Car Components has an inventory of 525 obsolete remote-entry keys that are carried in inventory at a manufacturing cost of $86,100. Production supervisor Laura Rousso must decide to do one of the following: Process the inventory further at a cost of $21,000, with the expectation of selling it for $28,000 Scrap the inventory for a sale price of $3,000 What should Rousso do? Present figures to support your decision. . Prepare the Sell or Process Further analysis. (If a box is not used in the table, leave the box empty; do not enter a zero.) Car Components Sell or Process Further Analysis Process Further Expected additional revenues 28000 Expected additional costs 21000 7000 Expected additional net revenues (costs) Scrap (Sell As Is) 3000 Difference 25000 0 21000 3000 4000
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