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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 $264,000
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 $264,000 to manufacture. The units can be sold as scrap for $156,000 or reworked for $198,000 and then sold for $374,000. If the company decides to rework the units, incremental income equals: Multiple Choice $(88,000). O $176,000. O $20,000 O $36,000 O O $218,000
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