Question

Multiple Choice Question 111 Mango Corp.hasold inventory on hand that com $12000. Itse Manufacture further and sell for $30000 value is $14000. The inventory could be sold for $10000 manufactured the at an additional cost of $17000. What should Hangod day Hold the inventory at its $12000 cost Sell the inventory for $14000 scrap value Dispose of the inventory to avoid any further decline in value Click if you would like to Show Work for this question Doen Work

Answer 1

Correct answer--------Manufacture further and sell it for $30000

Working

	Sell as is	Process further	Incremental amount
Sales revenue	$ 14,000.00	$ 30,000.00	$    16,000.00
Additional processing costs per unit		$ 12,000.00	$    12,000.00
Income (Loss)	$ 14,000.00	$ 18,000.00	$      4,000.00

Incremental expense is more than incremental cost so it is better to process further and sell.