An employee of Vera Corporation has found some partially completed units of Model 2003 in a dusty corner of the warehouse.
A job ticket attached to the units indicates that a total of $600 in manufacturing costs have been used to bring the materials to this point in the manufacturing process.
The units can be sold in their current condition for $200 to a scrap metal dealer. If Vera spends $180 to complete the units, they could be sold for $500.
A. What should Vera do and Why?
B. Give an example of a sunk cost that is not relevant in this problem.