Answered step by step
Verified Expert Solution
Question
1 Approved Answer
More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $190.000 and they
More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $190.000 and they have a buyer willing to pay $228,000. The company can also incorporate these parts into a new product at a cost of $142,500 and sell the new product for $361,000. What should More Parts Liquidators do? Sales Revenue Cost of Parts Additional Costs Profils Parts Only New Product Incremental w/Parts $ 228,000 $ 361,000 $ 133.000 190,000 190,000 142.500 142,500 $ 38.000 $ 28.500 More Parts should sell the parts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started