Solution-Explain which action would be more profitable for

Explain which action would be more profitable for company

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Reference no: EM132630118

Question - A company has an inventory of 1,000 assorted parts for a line of missiles that has been discontinued.

The inventory cost is $89,000. The parts can be either (a) retooled at a total additional costs of $33,000 and then sold for $137,400 or (b) sold as scrap for $104,400.

A. Explain which action would be more profitable for the company?

B. Which would you recommend? Show all your work.

Reference no: EM132630118

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Explain which action would be more profitable for company

Reference no: EM132630118

Reference no: EM132630118

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