ECollar, Inc has 1,000 units of its electronic tracking dog collar in inventory that had...
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ECollar, Inc has 1,000 units of its electronic tracking dog collar in inventory that had a production cost of $45 per unit and normally sells for $75 per unit. These units cannot be sold through normal channels due to a failure in the GPS component. These units could be reworked at a total cost of $23,000 and sold for $28,000. Another alternative is to sell the units to a junk dealer for $8,500. The relevant cost for ECollar, Inc to consider in making its decision is
Group of answer choices
A. $28,000 for selling the units to the junk dealer.
B. $23,000 for reworking the units.
C. $45,000 of original product costs.
D. $68,000 for reworking the units.
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