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[The following information applies to the questions displayed below.] Armstrong Corporation manufactures bicycle parts. The company currently has a $18,600 inventory of parts that have
[The following information applies to the questions displayed below.] Armstrong Corporation manufactures bicycle parts. The company currently has a $18,600 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $6,400, or modified for $9,200 and sold for $19,900. value: 5.00 points Required: 1. Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts. Current sales value for unmodified parts Sales value for modified parts Modification costs Current book value of inventory 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. Benefit if parts are sold without modification Net benft if parts are sold after being modified 2-b. How should the obsolete parts be disposed? Modify and then sell Sell in unmodified condition
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