More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products.

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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.

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Related Book For  answer-question

Managerial Accounting

ISBN: 978-1260413984

4th edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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