The Steel Can Company has 100,000 obsolete cans in inventory at a cost of $5,000.The cans can be cut in half to make candle holders for $1,000.The candle holders can be sold for $1,750 in total.If the cans are scrapped, they could be sold for $450.

Which alternative should the Steel Can Company accept, Sell at cut off or process further? What is the relevant profit from each alternative? Support your answers with the calculations you used to make your decision

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