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8 pts 24) ABC Company inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be manufactured. A salvage company will purchase the
8 pts 24) ABC Company inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be manufactured. A salvage company will purchase the defective units as they are for $8 each. The production manager reports that the defects can be corrected for $4.50 per unit, enabling the company to sell them at the regular price of $15.00. The repair operations would not affect other production operations, Calculate the following totals: Net income for scrap option: Net income for repair option: Should ABC Company scrap or repair? *You must show your work in the space below in order to get full credit. 6 pts 25) ABC Company manufactures two products. Each unit of product X requires 10 machine hours and each unit of product Y requires 4 machine hours. The company's productive capacity is limited to 180,000 machine hours. Each unit of product x sells for $15 and has variable costs of $7. Each unit of product Y sells for $8 and has variable costs of $3. If the company can sell all that it produces of both products, what should the sales mix be? Units of Product Y: Units of Product X: *You must show your work in the space below in order to get full credit
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