The Scrap Company has 5,000 obsolete truck parts that are carried in their inventory at a cost ofP50,000. The company is faced with a decision whether to scrap the parts or modify them. If the partswere junked, it would realize on 10% of its cost. Should the company modify the parts, it will spentP10,000 for materials, P3,000 for direct labor, and overhead equal to 40% of direct labor. The newparts will sell for P25,000 in the market