Armstrong Corporation manufactures bicycle parts. The company currently has a 19,500 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for 7,000, or modified for 10,000 and sold for 20,300.

How much is the total SUNK COST?

Group of answer choices

29,500

19,500

0

26,500

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Starlight Company manufactures part 2HD for use in its production cycle. The per unit cost for 2,000 units of part 2HD are as follows:

Direct Labor	25
Direct Materials	5
Fixed Overhead	20
Variable Overhead	10

United Supreme has offered to sell Starlight 2,000 units of part 2HD for 50 per unit. If starlight accepts the offer, the released facilities could be used to save 30,000 in relevant costs in its manufacture of part 2HD. In addition, 10 per unit of fixed overhead applied to part 2HD would be eliminated.

What is the total cost of buying part 2HD?

Group of answer choices

30,000

130,000

70,000

100,000