Answer the following unrelated questions:
(a) A company has an inventory of 1100 assorted parts for a line of missiles that has been discontinued. The inventory cost is $78,000. The parts can be either (a) remachined at total additional costs of $24,500 and then sold for $33,000 or (b) sold as scrap for $6500. Which action is more profitable? Show your calculations.
(b) A truck costing $101,000 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $17,500 cash and replaced with a similar truck costing $103,500 or (b) rebuilt for $89,500 and thus be
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