New Product w/Parts Parts Only Incremental Sales Revenue Cost of Parts Additional Costs Profit / loss More Parts should

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $125,000 and they have a buyer willing to pay $150,000. The company can also incorporate these parts into a new product at a cost of $93,750 and sell the new product for $237,500. What should More Parts Liquidators do?

 

 

 

 

New Product
w/Parts
Parts Only
Incremental
Sales Revenue
Cost of Parts
Additional Costs
Profit / loss
More Parts should
Transcribed Image Text:New Product w/Parts Parts Only Incremental Sales Revenue Cost of Parts Additional Costs Profit / loss More Parts should
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