Armstrong corporation manufactures bicycle parts the

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Armstrong Corporation manufactures bicycle parts. The company currently has a $20,400 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,900, or modified for $10,900 and sold for $22,100.

Calculate the benefit under each alternative for disposing of the obsolete parts.

a.) Benefit if parts are sold without modification... ??

b.) Net benefit if parts are sold after being modified...?

How should the obsolete parts be disposed of:

c.) modify and then sell - or - sell in unmodified condition

Reference no: EM13586677

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