The Lantern Corporation Has 1,000 Obsolete Lanterns That Are Carried

question 74

Multiple Choice

The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at ? manufacturing cost of $20,000. If the lanterns are remachined for $5,000, they could be sold for $9,000. Alternatively, the lanterns could be sold for scrap for $1,000. Which alternative is more desirable and what are the total relevant costs for that alternative?

• A)Scrap and $1, 000.
• B)Remachine and $25,000.
• C)Scrap and $21, 000.
• D)Remachine and $5,000.

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Definitions:

Anxious

Feeling anxious or apprehensive, typically regarding a forthcoming event or a situation with an unknown result.

Neuroticism

A personality trait characterized by a tendency to experience negative emotions such as anxiety, anger, or depression more frequently and intensely than others.

Openness to Experience

A personality trait typified by a willingness to try new things, creativity, curiosity, and an appreciation for art and beauty.

Big Five Traits

A psychological framework that characterizes human personality via five wide-ranging traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.