M7-9 (Algo) Analyzing Sell-or-Process Further Decisions [LO 7-6] More Parts Liquidators specializes in buying excess parts inventories to resell or to incorporate into other products. They recently purchased parts for $170,000 and they have a buyer willing to pay $204,000. The company also can incorporate these parts into new product at a cost of $127,500 and sell the new product for $323,000. What should More Parts Liquidators do? Sales Revenue Cost of Parts Additional Costs Proft/les More Parts should New Product Parts Only withparts $ 204,000 $ 323,000 S 34,000 sell the parts Incremental 127,500

M7-9 (Algo) Analyzing Sell-or-Process Further Decisions [LO 7-6] More Parts Liquidators specializes in buying excess parts inventories to resell or to incorporate into other products. They recently purchased parts for $170,000 and they have a buyer willing to pay $204,000. The company also can incorporate these parts into new product at a cost of $127,500 and sell the new product for $323,000. What should More Parts Liquidators do? Sales Revenue Cost of Parts Additional Costs Proft/les More Parts should New Product Parts Only withparts $ 204,000 $ 323,000 S 34,000 sell the parts Incremental 127,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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More Parts Liquidators specializes in buying excess parts inventories to resell or to incorporate into other products. They recently purchased parts for $135,000 and they have a buyer willing to pay $162,000. The company also can incorporate these parts into a new product at a cost of $101,250 and sell the new product for $256,500. What should More Parts Liquidators do? Sales Revenue Cost of Parts Additional Costs Profit/ loss More Parts should Parts Only New Product withparts Incremental
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Help Save & Che Required information [The following information applies to the questions displayed below.] Armstrong Corporation manufactures bicycle parts. The company currently has a $19,700 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,200, or modified for $10,200 and sold for $20,700. 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Calculate the benefit under each alternative for disposing of the obsolete parts. Benefit if parts are sold without modification Net benefit if parts are sold after being modified Req 2B >