BCD Company has 7,000 obsolete toys carried in inventory at a manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be sold for Ph 1.85 per unit. Which alternative is more desirable(rework or scrap) and what is the total peso amount of the advantage of that alternative? scrap, Ph 5,950 O rework, Ph 36,050 scrap, Ph 47,950 O rework, Ph 8,050
BCD Company has 7,000 obsolete toys carried in inventory at a manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be sold for Ph 1.85 per unit. Which alternative is more desirable(rework or scrap) and what is the total peso amount of the advantage of that alternative? scrap, Ph 5,950 O rework, Ph 36,050 scrap, Ph 47,950 O rework, Ph 8,050
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![BCD Company has 7,000 obsolete toys carried in inventory at a
manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per
unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be
sold for Ph 1.85 per unit. Which alternative is more desirable(rework or
scrap) and what is the total peso amount of the advantage of that
alternative?
scrap, Ph 5,950
rework, Ph 36,050
scrap, Ph 47,950
O rework, Ph 8,050](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80ec1e2f-4c8d-4281-ae51-2d39adf75467%2Ff376c4cf-3dad-4839-b29f-8f85bd31e9a2%2Fzstnmhm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:BCD Company has 7,000 obsolete toys carried in inventory at a
manufacturing cost of Phó per unit. If the toys are reworked for Ph 2 per
unit, it could be sold for Ph 3 per unit. If the toys are scrapped, it could be
sold for Ph 1.85 per unit. Which alternative is more desirable(rework or
scrap) and what is the total peso amount of the advantage of that
alternative?
scrap, Ph 5,950
rework, Ph 36,050
scrap, Ph 47,950
O rework, Ph 8,050
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