The Scrap company has 5,000 obsolete truck parts that are carried in their inventory at a cost of 50,000. The company is faced with a decision whether to scrap the parts or modify them. If the parts were junked, it would realize only 10% of its cost. Should the company modify the parts, it will spend 10,000 for materials, 3,000 for direct labor, and overhead equal to 40% of direct labor. The new parts will sell for 25,000 in the market. Required: Should Scrap Company modify or scrap the parts?