More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products.
Question:
More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $100,000 and they have a buyer willing to pay $120,000. The company can also incorporate these parts into a new product at a cost of $75,000 and sell the new product for $190,000. What should More Parts Liquidators do? Support your answer with calculations.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
More Parts should sell the parts as is and not i...View the full answer
Answered By
Sufiyan Ahmed Tariq
I am a Chartered Accountant and an Associate Public & Finance Accountant. I also hold a bachelors of Commerce degree. I have over 8 years of experience in accounting, finance and auditing. Through out my career, I have worked with many leading multinational organisation.
I have helped a number of students in studies by teaching them key concepts of subjects like accounting, finance, corporate law and auditing. I help students understanding the complex situation by providing them daily life examples.
I can help you in the following subject / areas:
a) Accounting;
b) Finance;
c) Commerce;
d) Auditing; and
e) Corporate Law.
4.90+
7+ Reviews
17+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-1260413984
4th edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Question Posted:
Students also viewed these Business questions
-
Dampier Associates is a holding company that specializes in buying out small to medium-sized textile companies. The company is currently considering purchasing three companies in the Carolinas: Alton...
-
Summit Equipment specializes in the manufacture of medical equipment, a field that has become increasingly competitive. Approximately two years ago, Ben Harrington, president of Summit, decided to...
-
Precision Equipment specializes in the manufacture of medical equipment, a field that has become increasingly competitive. Approximately 2 years ago, Pedro Mendez, president of Precision, decided to...
-
Find the incarization of the function x) - Vx+ 4 at a-5 and use it to approximate the numbers 8.97 and y9.05. Are these approximations overestimates or underestimates? SOLUTION The derivative of fx)...
-
In the Western blot shown here, proteins were isolated from red blood cells and muscle cells from two different individuals. One individual was unaffected, and the other individual suffered from a...
-
Kevin Chao and Richard Sze were executives at Rockwell Automation, with the ranks of Global Business Director and Manager of Software Engineering, respectively. In November 2021, they were charged...
-
Maribel Baltazar was hired by clothing retail merchandiser Forever 21 in 2007. During the hiring process, Baltazar was given an 11-page document to sign, two pages of which contained an arbitration...
-
At the beginning of the 2014 school year, Jen Lassiter decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December...
-
Medicare is financed through which three primary sources? Public donations, beneficiary premiums, general tax revenue General tax revenue, beneficiary premiums, payroll tax contributions Payroll tax...
-
Betty Cardinal runs Cardinals Book Shop in a downtown location. As her newly hired accountant, your task is to do the following (substituting HST at 13% for GST at 5% if your instructor so directs):...
-
Baker Company produced 1,500 units in May at a total cost of $10,000 and 4,000 units in June at a total cost of $18,000. Compute the variable cost per unit and the total fixed cost using the highlow...
-
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,000 remotes is as follows: Cost Direct materials .................... $65,000...
-
Doe Creek Interior Decorators issued a 120-day, 7% note for $150,000, dated February 18, 2014, to La Fleur Furniture Company on account. a. Determine the due date of the note. b. Determine the...
-
What happens to aggregate output if unplanned inventory investment is either positive or negative?
-
Discuss the effect of the investment tax credit implemented in the United States after the global financial crisis. What does empirical evidence suggest about the link between taxes and investment?
-
Suppose that during the last ten years, Nicole tried to forecast future inflation rates to negotiate her salary. Every year, she used all available information and even incorporated news about the...
-
Brazil has announced the discovery of huge oil reserves that could potentially transform the country into a big exporter of oil. a) What would be the effect of the increase in revenues from oil...
-
A Starbucks coffee sells for 10 yuan in Beijing, China, and for $2 in Chicago. a) Calculate the nominal exchange rate if the law of one price holds. b) Assume that the nominal exchange rate is...
-
If Selfycart or a similar mobile checkout app was available at your grocery store, would you use it? What benefits would you gain by using this new technology? Discuss the challenges you would face.
-
Troy is a qualified radiologist who operates a successful radiology practice from purpose- built rooms attached to his house. Troy works in the practice three days a week, and the other two days he...
-
Job 31 has a direct materials cost of $300 and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200 percent of direct labor cost. Use the relationships among total...
-
Carey Company applies manufacturing overhead costs to products as a percentage of direct labor dollars. Estimated and actual values of manufacturing overhead and direct labor costs are summarized...
-
Refer to M2-4 for Carey Company. 1. Determine how much overhead to apply to production. 2. Explain whether applied overhead was based on actual values, estimated values, orboth. Estimated Actual...
-
Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July 1 Inventory 106 units @ $28 July 8 Sale 85 units July 15 Purchase 118 units @ $32 July 27...
-
Materials Costing for a Furniture Company Pull Up a Chair Company manufactures furniture. The company uses a job order cost system. Balances on August 1 from the materials ledger are as follows:...
-
You are a defense attorney, and your first big case is a multiple murder. You have come to the realization that your client really did break into a couple's home and torture and kill them in the...
Study smarter with the SolutionInn App