Additional loss occurs on the sale


Rumper Company has 2,000 obsolete ratchers in its inventory which have a cost of $22 each. If the ratchers are reworked they could be sold for $37 each. If sold as-is, the revenue would be only $12 each. If Rumper Company decides to rework the ratchers, how much should the company be willing to invest to ensure that no additional loss occurs on the sale of the ratchers?

A. $54,000

B. $50,000

C. $20,000

D. $44,000

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Accounting Basics: Additional loss occurs on the sale
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