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chris018107
17.03.2020 •
Business
Armstrong Corporation manufactures bicycle parts. The company currently has a $19,800 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,300, or modified for $10,300 and sold for $20,900Calculate the benefit under each alternative for disposing of the obsolete parts.
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Ответ:
If sold without Modification, Armstrong Corporation will incur a loss of $12,500.
If the Corporation modifies the Stock and then Sell it, its loss will be $9,200.
Explanation:
Workings
Without Modification:
Selling Price = 7,300
Less: Cost of Inventory = 19,800
Loss = $12,500.
Modification:
Selling Price = 20,900
Less: Cost of Inventory = 19,800
Modification Cost = 10,300
Loss = $9,200.
If you have any queries, feel free to ask. Thanks!
Ответ:
b
Explanation: