Question

Swiftly corporation has an old inventory on hand that costs fifteen thousand seven hundred and fifty, it's scrap value is twenty one thousand the inventory could be sold for fifty two thousand five hundred if manufacturer further added additional cost of fifteen thousand seven hundred and fifty, what should swift do

Answer 1

See below.

Explanation:

Congrats on your first question.

I see a comparison problem here after some simple math.

They paid 15,750 for the inventory some time in the past.

It's worth 21,000 now (scrap value).

They got off lucky that it's worth more as scrap than when it was new product, as that's usually nowhere near the case. So they could sell and realize a profit of 21,000 - 15,750 = 5,350. Not bad.

But there's this other option where they can put 15,750 more into it and sell it for 52,500.

How do we decide if that's better?

We just need to add the original cost with this additional cost, then sell it for 52,500 and see what the profit would be.

15,750 + 15,750 = 31,500 total cost

Now find the profit if they sell:

52,500 - 31,500 = 21,000

Which one would you do? That's your answer.

Answer 2

it should be repaired and then sold so that swift gets more

Explanation: