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More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $135,000 and they
More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $135,000 and they have a buyer willing to pay $162,000. The company can also incorporate these parts into a new product at a cost of $101,250 and sell the new product for $256,500. What should More Parts Liquidators do? Parts Only New Product w/Parts Incremental Sales Revenue Cost of Parts Additional Costs Profit / loss More Parts should incorporate into a new product
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