Required information [The following information applies to the questions display

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Required information [The following information applies to the questions displayed below. Armstrong Corporation manufactures bicycle parts. The company currently has a $18,500 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $6,300, or modified for $9,100 and sold for $19,700 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed? Complete this question by entering your answers in the tabs below Req 2A Req 2B Calculate the benefit under each alternative for disposing of the obsolete parts. Benefit if parts are sold without modification Net benefit if parts are sold after being modified

Explanation / Answer

1)

2) Obsolete parts should be disposed off after necessary modification.

Benefits if parts are sold without modification 6300 Net benefits if parts are sold after necessary modification (19700-9100) 10600

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