Widmark Company originally made cell phones at a cost of $60,000 that have since become obsolete due to new technology.They can sell the phones to a dealer for scrap for $11,500 or put more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.
(A. )Should the company scrap them or rework them (show calculations)
(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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The Answer of Widmark Company originally made cell phones at a cost of $60,000 that have since become obsolete due to new technology.They can sell the phones to a dealer for scrap for $11,500 or put more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.
(A. )Should the company scrap them or rework them (show calculations)
(B. )If the original cost had been $50,000 and the company could now sell the phones for $25,000 what should Heston do?

Widmark Company Originally Made Cell Phones at a Cost of $60,000