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Gloster Corp. had spent $240,000 to produce metal housings for a line of test equipment that is now defunct. The company can remake the housings
Gloster Corp. had spent $240,000 to produce metal housings for a line of test equipment that is now defunct. The company can remake the housings to fit another line of equipment at a cost of $64,000; the housings would then have a market value of $136,000. Alternatively, the company could scrap the housings, which would generate revenues of $88,000.
Compute the differential profit for the better alternative: $_________________
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