Assorted parts for a line of missiles


A company has an inventory of 1,000 assorted parts for a line of missiles that has discontinued. The inventory cost is $75,000. The parts can be either (a) re-machined at total additional costs of $25,000 and then sold for $30,000 or (b) sold as scrap for $3,000. Which action is more profitable? Show your calculations.

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Accounting Basics: Assorted parts for a line of missiles
Reference No:- TGS049909

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