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Question - Central Medical Supply, Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment.
The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then be $136,000.
However, Tripac Ltd. has offered to purchase the obsolete equipment as is for $88,000.
Required - Identify relevant costs, sunk costs, opportunity cost, incremental costs (if any) in this problem.
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