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Widmark Company originally made cell phones at a cost of $60,000 that have since become obsolete due to new technology. They can sell the phones to a dealer for scrap for $11,500 or put more work into them to bring them up-to-date. To re-do the phones would cost $13,000 and they then could be sold for $20,000.
Question (A.) Should the company scrap them or rework them (show calculations)
Question (B.) If the original cost had been $50,000 and the company could now sell the phones for $25,000 what should Heston do?
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