Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oriole, Inc. has 9700 obsolete calculators, which are carried in inventory at a cost of $19900. If the calculators are scrapped, they can be sold

Oriole, Inc. has 9700 obsolete calculators, which are carried in inventory at a cost of $19900. If the calculators are scrapped, they can be sold for $1.20 each (for parts). If they are repackaged, at a cost of $14800, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why? Scrap; profit is $2190 greater repackage; revenue is $5100 greater then cost Scrap; incremental loss is $8260 repackage; receive profit of $9450

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-12

Authors: Douglas McQuaig

10th Edition

1439038783, 978-1439038789

More Books

Students also viewed these Accounting questions