10. Micron Manufacturing produces electronic equipment. This year, it produced 7500 oscilloscopes at a manufacturing cost of $300 each. These scopes were damaged in the warehouse during storage. Although they are usable, they cannot be sold at their regular selling price of $500 each. Management has investigated the matter and has identified three alternatives for these scopes. (10 points) a. They can be sold to a wholesaler for $75 each. b. Then can be disassembled at a cost of $400,000 and the parts sold to a recycler for $130 each C. They can be reworked and turned into good units. The cost of reworking the units will be $3,200,000 after which, the units can be sold at their regular price of $500 each.

10. Micron Manufacturing produces electronic equipment. This year, it produced 7500 oscilloscopes at a manufacturing cost of $300 each. These scopes were damaged in the warehouse during storage. Although they are usable, they cannot be sold at their regular selling price of $500 each. Management has investigated the matter and has identified three alternatives for these scopes. (10 points) a. They can be sold to a wholesaler for $75 each. b. Then can be disassembled at a cost of $400,000 and the parts sold to a recycler for $130 each c. They can be reworked and turned into good units. The cost of reworking the units will be 53,200,000 after which, the units can be sold at their regular price of $500 each