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
Chapter1: Financial Statements And Business Decisions
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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 a
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
Profit/loss
More Parts should
New Product
withparts
323,000
Parts Only
$ 204,000 $
$ 34,000
sell the parts
Incremental
Seved
127.500
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