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Answer the following questions A company has an inventory of 1 450 assorted parts for a line of missiles that has been discontinued The inventory

  1. A company has an inventory of 1,450 assorted parts for a line of missiles that has been discontinued. The inventory cost is $72,000. The parts can be either​ (a) remachined at total additional costs of $28,000 and then sold for $34,000 or​ (b) sold as scrap for $5,000. Which action is more​ profitable? Show your calculations.
  2. A​ truck, costing $101,500 and​ uninsured, is wrecked its first day in use. It can be either​ (a) disposed of for

14,500 cash and replaced with a similar truck costing $106,000 or​ (b) rebuilt for $85,000​, and thus be​ brand- new as far as operating characteristics and looks are concerned. Which action is less​ costly? Show your calculations.

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