aughn Company has old inventory on hand that cost $11800. Its scrap value is $15900. The inventory could be sold for $37900 if manufactured further at an additional cost of $11800. What should Vaughn do?

Sell the inventory for $15900 scrap value.

Dispose of the inventory to avoid any further decline in value.

Hold the inventory at its $11800 cost.

Manufacture further and sell it for $37900.