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The Crete Corporation has 2,000 obsolete units of a product that are carried in inventory at a manufacturing cost of $40,000. If the units are
The Crete Corporation has 2,000 obsolete units of a product that are carried in inventory at a manufacturing cost of $40,000. If the units are remachined for $10,000, they could be sold for $18,000. Alternatively, the units could be sold for scrap for $2,000. Which alternative is more desirable and what are the total relevant costs for that alternative? Multiple Choice Remachine; $10,000. Remachine; $50,000.
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