The Lantern Corp has 1,000 obsolete lanterns that are carried in Inventory with a mg cost of $20,000. If the lanterns are re-machined for $5,000, they could be sold for $9,000

Alternatively the lanterns could be sold for scrap for $1,000 Which alternative is more desirable, & what are the total relevant costs for that alternative?

A)

Re-machine & $5,000

Expantions: $5000 if lanterns is remachined and then it can be sold for $9000 so $9000 - $5000 = $4000

B)

Re-machine & $25,000

C)

Scrap & $20,000

D)

Scrap & $19,000