Question: Example 1: Sell as is/Process further MLC Industries, a computer manufacturer, has in its inventory $80,000 worth of disk-drive housing for a computer line that

Example 1:

Sell as is/Process further MLC Industries, a computer manufacturer, has in its inventory $80,000 worth of disk-drive housing for a computer line that is now obsolete. The housings can be re-machined to fit a newer line at a cost of $15,000 and then sold for $33,000. MLC Industries' other alternative is to sell the housings as a scrap for $12,000.

Should the MLC Sell As Is or Process Further?

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