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The Aluminum Can Company has 200,000 obsolete cans in inventory at a cost of $10,000. The cans can be cut in half to make candle

The Aluminum Can Company has 200,000 obsolete cans in inventory at a cost of $10,000. The cans can be cut in half to make candle holders for $2,000. The candle holders can be sold for $3,500 in total. If the cans are scrapped, they could be sold for $900.

Which alternative should the Aluminum Can Company accept and what is the relevant profit from the alternative?

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