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The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing cost of $20,000. If the lanterns are re- machined for
The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing 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, and what are the total relevant costs for that alternative? Multiple Choice Re-machine and $5,000. Re-machine and $25,000. Scrap and $20,000. O Scrap and $19,000
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