Dragonparts Ltd has a stock of 2,000 assorted aircraft parts for an aircraft no longer in production. The stock of parts had a cost of $40,000 Management is faced with two alternatives: a) Remachine the parts at a total additional cost of $15,000 and then sell for a total of $20,000 OR b) Scrap for $3,000 Required: What action should be taken to maximise profits ?

Answer rating: 100% (QA)

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