Question
Guthrie Company has 8,000 obsolete lamps carried in inventory at a cost of $12.00 each. They can be sold as they are for $3.00 each.
Guthrie Company has 8,000 obsolete lamps carried in inventory at a cost of $12.00 each. They can be sold as they are for $3.00 each. They can be reworked, however, at a total cost of $38,400 and sold for $10.50 each. Requirement Determine whether it is worthwhile to rework these lamps. Question content area bottom Part 1 First determine the formula to calculate the net return under each alternative, then calculate the net return under each alternative. (Complete all input cells. Enter a "0" for amounts with a zero balance.) - = Net return Sell as is - = Sell after rework - = Part 2 Guthrie Company should should not rework the lamps.
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