Bruce Co. has 4500 units in inventory. It made the product last year at a cost of $54 each. This year's model is much better and the 4500 units can't be sold at last year's regular price. Bruce Co. has two alternatives. It could sell the inventory to a wholesaler for $45 each or it could rework the inventory at a cost of $27900 and then sell them for $63 each. What is the financial impact of reworking the units? Should Bruce sell now or rework? Rework
Bruce Co. has 4500 units in inventory. It made the product last year at a cost of $54 each. This year's model is much better and the 4500 units can't be sold at last year's regular price. Bruce Co. has two alternatives. It could sell the inventory to a wholesaler for $45 each or it could rework the inventory at a cost of $27900 and then sell them for $63 each. What is the financial impact of reworking the units? Should Bruce sell now or rework? Rework
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 2CMA
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