Central Medical Supply, Inc., a manufacturer of medical testing equipment,

has $240,000 worth of an obsolete line of testing equipment.

The obsolete

equipment can be adapted to fit another line of testing equipment at a cost of

$64,000; the market value would then be $136,000.

However, Tripac Ltd. has

offered to purchase the obsolete equipment as is for $88,000.

Identify relevant costs, sunk costs, opportunity cost, incremental costs ( if any)

in this problem.