Crane Company has old inventory on hand that cost $7500. Its scrap value is $10000. The inventory could be sold for $25000 if manufactured further at an additional cost of $7500. What should Crane do

If the company reworks the units, income will increase by $7,500

Explanation:

Giving the following information:

The initial cost should not be taken into account.

Sell as-is:

Selling price= $10,000

Rework:

Additional cost= $7,500

Selling price= $25,000

We need to determine which option is most profitable.

Sell as-is:

Effect on income= $10,000

Rework:

Effect on income= 25,000 - 7,500= $17,500

If the company reworks the units, income will increase by $7,500

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.