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Edison Company has 5,000 obsolete desk lamps that are carried in inventory at a manufacturing cost of $45000. If the lamps are reworked for $20,000, they could be sold for $37,000. Alternatively, the lamps could be sold for $9,000 for scrap. In a decision model analyzing these alternatives, the sunk cost would be:

a. $9,000

b. $8,000

c. $43,000

d. $45,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M967793

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