Question
A company is running at maximum WIP ($31,500). They discover on unit #22 that there is a serious flaw in the unit. The units need
A company is running at maximum WIP ($31,500). They discover on unit #22 that there is a serious flaw in the unit. The units need to be either reworked or scrapped.
* What is the maximum scrap exposure with maximum WIP and with Minimum WIP?
* If rework is approved, what is the delta in rework costs between MAX WIP and MIN WIP?
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