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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 $268,000
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 $268,000 to manufacture. The units can be sold as scrap for $158,400 or reworked for $201,000 and then sold for $379,600. If the company decides to rework the units, incremental income equals: Multiple Choice $20,200 $178.600 $88.300 $37,200 $20,200. $178,600. $(89,300) $37,200 $221,200
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