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

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

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 $130,000 and they have a buyer willing to pay $156,000. The company also can incorporate these parts into a new product at a cost of $97,500 and sell the new product for $247,000. 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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