Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000

Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why?

A. Repackage; receive profit of $10,000.

B. Scrap; incremental loss is $9,000.

C. Scrap; profit is $1,000 greater.

D. Repackage; revenue is $5,000 greater than cost.

 ACC 349FINAL EXAM
acc349 final exam examination
Download 2 set of final exams 42x2 questions answered + 50 other bonus questions answered Click HERE

Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000.

Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why?

A.   Repackage; revenue is $5,000 greater than cost.

B.   Scrap; incremental loss is $9,000.

C.   Repackage; receive profit of $10,000.

D.   Scrap; profit is $1,000 greater.

ACC 349FINAL EXAM
acc349 final exam examination
Download 2 set of final exams 42x2 questions answered + 50 other bonus questions answered Click HERE