Answer:
It is more profitable to continue processing.
Explanation:
Giving the following information:
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.
Sell for scrap= 65,000 - 50,000= 15,000
Continue processing= 150,000 - 80,000 - 50,000= 20,000
Answer:
Explanation:
1)Use spreadsheet for the required computations. Enter values and formulas in the spreadsheet as shown in the image below.
2)The obtained result is provided below.