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Business, 23.12.2020 23:20 nkazmirski3229

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.50 per unit to manufacture. The units can be a) sold as is for $3.10 each, or b) reworked for $4.50 each and then sold for the full price of $8.60 each. What is the incremental income from selling the units as scrap and reworking and selling the units

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A company with excess capacity must decide between scrapping or reworking units that do not pass ins...
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