Cornerstone, Incorporated has $$127,000$ of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods $"$as is$"$ for $$45,000$; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $$25,000.$ There the goods could be sold for $$82,000.$ What alternative is more desirable and what is the relevant cost for that alternative?

Multiple Choice

Clean and ship to outlet center, $$152,000$

Clean and ship to outlet center, $$25,000$

Sell $"$as is$,"$ $$127,000$

Neither alternative is desirable, as both produce a loss for the firm

Clean and ship to outlet center, $$107,000$