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Johnson Co. is considering the sale of some obsolete inventory. The inventory cost $8,500 to produce, and can be sold 'as is' for $6,000. Alternatively,

Johnson Co. is considering the sale of some obsolete inventory. The inventory cost $8,500 to produce, and can be sold 'as is' for $6,000. Alternatively, Johnson can rework the inventory at a cost of $2,500 and sell the reworked product for $10,000. The financial advantage or disadvantage of a decision to rework the inventory rather than selling it 'as is' would be

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