Kelly Company Has 20,000 Units in Inventory That Had a Production

Kelly Company has 20,000 units in inventory that had a production cost of $4 per unit.These units cannot be sold through normal channels due to a significant technology change.These units could be reworked at a total cost of $30,000 and sold for $35,000.Another alternative is to sell the units to a junk dealer for $10,500.The relevant cost for Kelly to consider in making its decision is

A) $80,000 of original product costs.
B) $30,000 for reworking the units.
C) $110,000 for reworking the units.
D) $35,000 for selling the units to the junk dealer.

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