Which alternative should the shallow pan company accept

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Reference no: EM131118182

The Shallow Pan Company has 85 obsolete pans in inventory at a cost of $5,000. The obsolete pans can't be sold in their current condition. The pans can be upgraded to tri-ply for $2,000. The tri-ply pans could be sold for $3,500 in total. If the pans are scrapped, they could be sold for $1,250.

Which alternative should the Shallow Pan Company accept and what is the relevant profit from the alternative?

Reference no: EM131118182

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