A company inadvertently produced 3,000 defective MP3 play ers. The players cost $12 each to produce. A

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A company inadvertently produced 3,000 defective MP3 play¬ ers. The players cost $12 each to produce. A recycler offers to purchase the defective players as they are for $8 each. The pro¬ duction 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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Fundamental Accounting Principles Volume 2

ISBN: 9780077716660

21st Edition

Authors: John Wild, Ken Shaw, Barbara Chiappetta

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