Question: Need help with whole problem Truck Components has an inventory of 4?5 obsolete remote entry keys that are [aimed in inventory at a manufacturing cost

Need help with whole problem

Need help with whole problem Truck Components has an inventory of 4?5

Truck Components has an inventory of 4?5 obsolete remote entry keys that are [aimed in inventory at a manufacturing cost of $76.4?5. Production supervisor Carlo James must decide to do one of the following: - Process the inventory further at a cost of $21 .000, with the expectation of selling it for $30,000 - Scrap the inventory for a sales price of $3 ,500 What should James do? Present gures to support your decision. Prepare the Sell or Process Further analysis. [Enter a "O" for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) Incremental Analysis Sell As Is Process Sell of Process Further Decision {Scrap} Further Difference Revenues $ 3500' 3 some? :5 26,500' ' ' ' Less: Extra cost of processing further 0 ' V ' Net benet {toss} to operating income $ 3"5m 3 3000 $ 5'500 James should |:| because processing further will |:| operating income by |:|

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