Valley Plumbing Co. has 500 rusted plumbing fixtures that are carried in inventory at a purchase cost of \(\$ 3,000\). If the fixtures are reworked for \(\$ 1,000\), they can be sold for \(\$ 4,000\). Alternatively, they can be sold for salvage for \(\$ 1,500\).

Required:

(a) For this decision making situation, identify any

(1) opportunity costs

(2) sunk costs.

(3) Outlay cost

(4) Avoidable cost.

(b) What qualitative considerations may affect the decision?