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lilavasa [31]
3 years ago
7

Taylor Inc. has some material that originally cost $65,500. The material has a scrap value of $56,300 as is, but if reworked at

a cost of $1,750, it could be sold for $55,700. What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap
Business
1 answer:
fgiga [73]3 years ago
5 0

Answer:

-$2,350

Explanation:

In this question, we have to compare the cost which is shown below:

If we considered the reworked cost, then the sales would be

= Sales - reworked cost

= $55,700 - $1,750

= $53,950

And the scrap value is $56,300

So, the financial disadvantage would be

= Sales without reworked cost - scrap value

= $53,950 - $56,300

= -$2,350

All other information which is given is not relevant. Hence, ignored it

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[ Answer ]

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[ Explanation ]

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When lighting a campfire or barbecue, you may notice lots of smoke. The smoke may affect your breathing, make you thirsty, or dry you out. This is the same affect of the meats. The smoke provides lots more flavor for the meat, and dries it out, if there is not enough fat on the meat.

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