Car Components, Inc., has an inventory of 500 obsolete remote-entry keys that are carried in inventory at
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Car Components, Inc., has an inventory of 500 obsolete remote-entry keys that are carried in inventory at a manufacturing cost of \(\$ 80,000\). Production supervisor Leo George must decide whether to:
- Process the inventory further at a cost of \(\$ 20,000\), with the expectation of selling it for \(\$ 28,000\),
- Scrap the inventory for a sale price of \(\$ 5,000\)
What should George do? Present figures to support your decision.
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