Jensen Auto Components has an inventory of 480 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $ 78,720. Production Supervisor Karen Rinke must decide to do one of the following:
• Process the inventory further at a cost of $ 23,000, with the expectation of selling it for $ 30,000
• Scrap the inventory for a sales price of $ 3,500
What should Rinke do? Present figures to support your decision.