HIJK Company has on its inventory for almost three years electronics items with historical cost of 1,200. The cost to sell this products now is 50 per unit and can be sold at a price of 800 per unit. The said electronics items will become obsolete and proper provision for obsolescence is already accounted. What course of action is beneficial to the company as a whole? Sell the electronics items since the incremental benefit is more than the incremental cost. Net incremental benefit of selling is 750 per unit Do not sell the electronics items since the selling price is below the total cost. A net loss will be 450 per unit if sold.

HIJK Company has on its inventory for almost three years electronics items with historical cost of 1,200. The cost to sell this products now is 50 per unit and can be sold at a price of 800 per unit. The said electronics items will become obsolete and proper provision for obsolescence is already accounted. What course of action is beneficial to the company as a whole? Sell the electronics items since the incremental benefit is more than the incremental cost. Net incremental benefit of selling is 750 per unit Do not sell the electronics items since the selling price is below the total cost. A net loss will be 450 per unit if sold.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9EB: Baghdad Company produces a single product. They have recently received the result of a market survey...

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