Multiple Choice
Mega Manufacturing has defective inventory on hand, which cost $27,000 to manufacture. The company can sell the defective inventory as is for $18,000 or rework the units at a cost of $12,000 and sell the inventory for $26,000. The sunk cost and the opportunity cost of selling the inventory as is (rather than rework the units) are: Sunk Cost Opportunity Cost
A) $0 $18,000
B) $27,000 $14,000
C) $27,000 $18,000
D) $18,000 $14,000
Correct Answer:
Verified
Correct Answer:
Verified
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