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A company must decide between scrapping or reworking units that do not pass inspection. The company has 44,000 defective un its that have already cost
A company must decide between scrapping or reworking units that do not pass inspection. The company has 44,000 defective un its that have already cost $280,000 to manufacture. The units can be sold as scrap for $165,600 or reworked for $210,000 and then sold for $396,400. If the company decides to rework the units, incremental income equals: Multiple Choice 5186,400. $40.800 520.800 59322001. $230.800
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