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Vehicle Accessories has an inventory of 525 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $82,425. Production supervisor Carlo
Vehicle Accessories has an inventory of 525 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $82,425. Production supervisor Carlo Lewis must decide to do one of the following: Process the inventory further at a cost of $20,000, with the expectation of selling it for $30,000 Scrap the inventory for a sales price of $4,000 What should Lewis do? Present figures to support your decision Prepare the Sell or Process Further analysis. (Enter a "O" for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) Sell As Is Incremental Analysis Process Scrap)Further Difference Sell of Process Further Decision Revenues Less: Extra cost of processing further Net benefit (loss) to operating income Enter any number in the edit fields and then click Check
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