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Dobson Corp. has 22,000 tons of old inventory in a warehouse that originally cost $24,000 to manufacture. It could be sold as scrap to a
Dobson Corp. has 22,000 tons of old inventory in a warehouse that originally cost $24,000 to manufacture. It could be sold as scrap to a buyer in Thailand for $32,000 minus transportation cost of $0.35 per ton. Alternatively, the 22,000 tons of old inventory could be sold here in the USA for $88,000 if it is processed further at an additional cost. Dobson processes the old inventory further. This results in an increase in Dobsons net income of $3,500. Calculate the additional processing cost of the old inventory (round to nearest $1).
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