Answer the following questions. 1. A company has an inventory of 1,400 assorted parts for a line of missiles that has be

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Answer The Following Questions 1 A Company Has An Inventory Of 1 400 Assorted Parts For A Line Of Missiles That Has Be 1 (64.26 KiB) Viewed 39 times

Answer the following questions. 1. A company has an inventory of 1,400 assorted parts for a line of missiles that has been discontinued. The inventory cost is $74,000. The parts can be either (a) remachined at total additional costs of $27,500 and then sold for $34,000 or (b) sold as scrap for $5,500. Which action is more profitable? Show your calculations. 2. A truck, costing $103,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,500 cash and replaced with a similar truck costing $104,000 or (b) rebuilt for $88,000, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. 1. A company has an inventory un 1,400 assure parts for a time of middle and en discontinued. The inventory cost is $74,000. The pana can we een (a) remained at total auditional custa un 327,000 and en die 101 234,000 1 (b) sold as scrap for $5,500. Which action is more profitable? Show your calculations. (Only complete the necessary answer boxes.) (a) Remachine (b) Scrap Deduct: Operating income Action ▼ more profitable. 2. A truck, costing $103,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,500 cash and replaced with a similar truck costing $104,000 or (b) rebuilt for $88,000 and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations. (Only complete the necessary answer boxes.) (a) (b) Rebuild Replace Deduct: Toal relevant costs Action ▼is less costly.