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has an inventory of 475 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $76,950. Production supervisor Andy George must

has an inventory of 475 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $76,950. Production supervisor Andy George must decide to do one of the following:

Process the inventory further at a cost of $22,000, with the expectation of selling it for $34,000

Scrap the inventory for a sales price of $6,000What should George 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.)

Incremental Analysis

Sell As Is

Process

Sell of Process Further Decision

(Scrap)

Further

Difference

Revenues

Less: Extra cost of processing further

Net benefit (loss) to operating income

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