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27 Cornerstone, Inc. has $148,000 of Inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods as
27 Cornerstone, Inc. has $148,000 of Inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $54,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $26,000. There the goods could be sold for $103,000. What alternative is more desirable and what is the relevant cost for that alternative? Speed Multiple Choice Print O Sell as is: $140,000 Clean and ship to outlet center, $26,000. Clean and ship to outlet center, $129,000 Clean and ship to outlet center, $174,000. Neither alternative is desirable, as both produce a loss for the firm, 28 In early July, Damon Rutton purchased a $90 ticket to the December 17 game of the Sarasota Shippers. Paring for the game was expected to cost approximately $23, and Rutton would probably spend another $17 for a souvenir program and food. It is now December 16. The Shippers were having a miserable season and the temperature was expected to peak at 5 degrees on game day, Damon is thinking about sipping the game and taking his wife to the movies and dinner, at a cost of $60. The amount of sunk cost that should influence Damon's decision to spend some time with his wife is: Print Multiple Choice $0. a $30 O $60 $90
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