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A company must decide between scrapping or reworking units that do not pass inspection. The company has 1 6 , 0 0 0 defective units

A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $52,800 or reworked for $80,000 and then sold for $136,000.

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