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2. 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?

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No. of obsolate pan
Cost of Obsolate pan
Upgrad cost
That could be sold for 85
$3,500 If pans are scrapped:
Could be sold for $1,250 Difference in alternatives $250 Relavant Profit...

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