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A company must decide between scrapping or reworking units that do not pass inspection. The company has 44,000 defective units that have already cost $294,000
A company must decide between scrapping or reworking units that do not pass inspection. The company has 44,000 defective units that have already cost $294,000 to manufacture. The units can be sold as scrap for $174,000 or reworked for $220,500 and then sold for $416,000. If the company decides to rework the units, incremental income equals: Multiple Choice $21,500. O O O $195,500. O O $(97,750). $45,000. O O $242,000
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