Harley Manufacturing just completed taking its annual physical inventory count. During the count process, 300 cases of

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Harley Manufacturing just completed taking its annual physical inventory count. During the count process, 300 cases of product from last year's production run were found in a closet. Because of changes in the product design this year, these units are now obsolete. The cases are recorded in the inventory account at a total cost of $600,000. These items could be sold for scrap for a total of $30,000. Alternatively, the company could rework the items at a total cost of $70,000 and then sell them for a total of $80,000. The sunk cost in this situation is: Harley Manufacturing just completed taking its annual physical inventory count. During the count process, 300 cases of product from last year's production run were found in a closet. Because of changes in the product design this year, these units are now obsolete. The cases are recorded in the inventory account at a total cost of $600,000. These items could be sold for scrap for a total of $30,000. Alternatively, the company could rework the items at a total cost of $70,000 and then sell them for a total of $80,000. The sunk cost in this situation is: $70,000 $600,000 $80,000 $30,000