These are the options for the bottom questions.

Johns should "sell as scrap", or "further process inventory" because processing further will "decrease" or "increase" operating income by _____

Truck Components has an inventory of 510 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $83,130. Production supervisor Carlo Johns must decide to do one of the following: Process the inventory further at a cost of $30,000, with the expectation of selling it for $31,000 Scrap the inventory for a sales price of $4,500 What should Johns do? Present figures to support your decision Prepare the Sell or Process Further analysis. (Enter a "0" for any zero amounts. Use minus sign or parentheses when the scrap amount exceeds the process further amount.) Incremental Analysis Sell of Process Further Decision Sell As Is (Scrap) Process Further Difference Revenues Less: Extra cost of processing further Net benefit (loss) to operating income Johns should because processing further will operating income by