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= Homework: Exercise 11-21 & 22 Answer the following questions. 1. Question 1, E12-21 (book/static) Part 3 of 4 HW Score: 18.38%, 0.37 of 2

= Homework: Exercise 11-21 & 22 Answer the following questions. 1. Question 1, E12-21 (book/static) Part 3 of 4 HW Score: 18.38%, 0.37 of 2 points Points: 0.37 of 1 Save Previous question 2. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $72,000. The parts can be either (a) remachined at total additional costs of $28,000 and then sold for $33,500 or (b) sold as scrap for $3,500. Which action is more profitable? Show your calculations. A truck, costing $103,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,500 cash and replaced with a similar truck costing $102,000 or (b) rebuilt for $84,000, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. Deduct: Future costs 28,000 5,500 $ 3,500 Operating income Action (a) is more profitable. 2. A truck, costing $103,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,500 cash and replaced with a similar truck costing $102,000 or (b) rebuilt for $84,000 and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) New truck Deduct: Toal relevant costs (a) (b) Replace Rebuild

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