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

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
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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
Transcribed Image Text: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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