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#7. Glove, Inc, manufactures baseball gloves that normally sell for $55 each. The firm currently has 400 defective gloves each of which cost the company

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#7. Glove, Inc, manufactures baseball gloves that normally sell for $55 each. The firm currently has 400 defective gloves each of which cost the company as in materials. Iabor. and overhead. The defective gloves can be sold as is at a reduced price of $18 per glove. Alternatively, the gloves can be completely repaired at a cost of $27 per glove and sold at the regular price of $55. What would be the incremental effect on the company's overall profit of repairing and selling the gloves at the regular price rather than selling them as defective gloves? a) $4,000 increase $3,600 increase c) $2,000 increase d) $5,100 decrease e) None of the above

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