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spayn [35]
3 years ago
12

Armstrong Corporation manufactures bicycle parts. The company currently has a $18,500 inventory of parts that have become obsole

te due to changes in design specifications. The parts could be sold for $6,300, or modified for $9,100 and sold for $19,700.
Calculate the benefit under each alternative for disposing of the obsolete parts.
Business
1 answer:
MaRussiya [10]3 years ago
3 0

Explanation:

There are two alternatives

1. Sold for $6,300

The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500

2. Repair and after that sale it

Now in this case, we have to determine the benefit generated i.e come from

= Sale value - repairing cost

= $19,700 - $9,100

= $10,600

As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company

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What are the two types of products that
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Ray's Pizzeria is considering the addition of a 5th worker if this increases profit. Pizza sales increased from 300 per day to 3
Anika [276]

Answer:

60 pizzas

40 pizzas

Explanation:

Marginal product measures the change in output as a result of a change in input by one unit

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It can be seen that marginal product decreased from 60 to 40 when the 5th worker was added. This illustrates diminishing marginal returns.

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6 0
2 years ago
In the product development process, what takes place between concept testing and market testing?
densk [106]
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5 0
3 years ago
If manufacturing overhead has been underallocated during the period, then which of the following is true?(a) the jobs produced d
Alecsey [184]

Answer:

The correct answer is B: the jobs produced during the period have been under-costed

Explanation:

Giving the following information:

If manufacturing overhead has been under-allocated during the period, then which of the following is true?

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