Cedar Hill, Inc. has $130,000 of inventory that suffered minor damage from a roof leak in the warehouse. The company can sell the goods "as is" for $42,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $28,000. There the goods could be sold for $85,000. What alternative is more desirable and what is the relevant cost for that alternative?

Multiple Choice

• Sell "as is," $130,000.

• Clean and ship to outlet center, $113,000.

• Neither alternative is desirable, as both produce a loss for the firm.

• Clean and ship to outlet center, $158,000.

• Clean and ship to outlet center, $28,000.