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8 March, 03:24

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000. What should this company do?

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  1. 8 March, 04:53
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    It is more profitable to continue processing.

    Explanation:

    Giving the following information:

    A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.

    Sell for scrap = 65,000 - 50,000 = 15,000

    Continue processing = 150,000 - 80,000 - 50,000 = 20,000
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Home » Business » A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000. What should this company do?
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