Garcia Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a rainstorm because the warehouse where they were stored developed a...

Garcia Company has 10,000 units of its product that were produced last year at a total cost of $150,000.

The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in

the roof. Garcia can sell the units as is for $2 each or it can repair the units at a total cost of $18,000 and

then sell them for $5 each. Should Garcia sell the units as is or repair them and then sell them?