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The Twilight Company has 1,000 obsolete twinkling lights that are carried in stock at a manufacturing cost of P200,000. If the twinkling lights are redesigned
The Twilight Company has 1,000 obsolete twinkling lights that are carried in stock at a manufacturing cost of P200,000. If the twinkling lights are redesigned for P50,000, they could be sold for P90,000. If the twinkling lights are scrapped, they could be sold for P10,000. What alternative is more desirable and what are the total relevant costs for that alternative? a. Redesign and P50,000. b. Redesign and P150,000. C. Scrap and P200,000. d. Neither, as there is an overall loss under either alternative
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