Buchanan Company has 15,000 obsolete model cell phones that are carried in inventory at a cost of $1,800,000. If these cell phones are upgraded at a total cost of $630,000, they can be sold for a total of $750,000. Alternatively, Buchanan can sell the cell phones in their present condition for $160,000. The sunk cast in this situation is: O $2,430,000 O $160,000 O $750,000 O $1,800,000 O $630,000 Next.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.