What should Morgan do

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Question - An employee of Morgan Corporation has found some partially completed units of Model X in a dusty corner of the warehouse. A job ticket attached to the units indicates that a total of $750 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 Morgan spends $250 to complete the units, they could be sold for $600.

Required -

A. What should Morgan do? Why?

B. Identify the sunk cost, if any.

Reference no: EM132714110

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