A company inadvertently produced 3,000 defective MP3 players. The players cost $12 each to produce. A recycler
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A company inadvertently produced 3,000 defective MP3 players. The players cost $12 each to produce. A recycler offers to purchase the defective players as they are for $8 each. The production manager reports that the defects can be corrected for $10 each, enabling them to be sold at their regular market price of $19 each. The company should:
a. Correct the defect and sell them at the regular price.
b. Sell the players to the recycler for $8 each.
c. Sell 2,000 to the recycler and repair the rest.
d. Sell 1,000 to the recycler and repair the rest.
e. Throw the players away.
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Related Book For
Fundamental Accounting Principles
ISBN: 9780077303204
19th Edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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