Answered Essay: Vehicle Accessories has an inventory of 480 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $74

Vehicle Accessories has an inventory of 480 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $74,880. Production supervisor Leo James must decide to do one of the following: Process the inventory further at a cost of $32,000, with the expectation of selling it for S35,000 Scrap the inventory for a sales price of $5,500 What should James do? Present figures to support your decision. Prepare the Sell or Process Further analysis. (Enter a o for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) Incremental Analysis Sell As Is Process Sell of Process Further Decision (Scrap) Further Difference 5500 32000 Revenues Less: Extra cost of processing further Net benefit (loss) to operating income James should because processing further will operating income by $

Vehicle Accessories has an inventory of 480 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $74,880. Production supervisor Leo James must decide to do one of the following: Process the inventory further at a cost of $32,000, with the expectation of selling it for $35,000 Scrap the inventory for a sales price of $5,500 What should James do? Present figures to support your decision. Prepare the Sell or Process Further analysis. (Enter a “0” for any zero amounts. Use a minus sign or parentheses when the scrap amount exceeds the process further amount.) James should because processing further will operating income by $

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