Vickery Machining Company is nearly finished constructing a specially designed piece of machining equipment when the customer declares bankruptcy and cannot pay for the equipment. Vickery estimates that the cost associated with making the uncompleted equipment was $ Because the machining equipment was specially designed for the customer, there are no other buyers for the equipment unless it is rebuilt. The cost to rebuild is $ after which the product can be sold for $ or the equipment can be scrapped for $
a Identify each of the costs in this scenario as sunk, outofpocket, or incremental.
b What should Vickery do
Complete this question by entering your answers in the tabs below.
Required A
Identify each of the costs in this scenario as sunk, outofpocket, or incremental.
tableCosts incurred todate,Costs to rebuild,Potential sales price,
