A company has an inventory of 1,300 assorted parts for a line of missiles that has been discontinued. The inventory cost
Posted: Sun Jun 05, 2022 9:10 pm
A company has an inventory of 1,300 assorted parts for a line of missiles that has been discontinued. The inventory cost is $71,000. The parts can be either (a) remachined at total additional costs of $27,500 and then sold for $31,500 or (b) sold as scrap for $6,000. Which action is more profitable? Show your calculations.