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A Y Corporation produced 10,000 defective radios. The radios cost $8 each. A salvage company will pay $3 each for the defective radios. Y's production

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A Y Corporation produced 10,000 defective radios. The radios cost $8 each. A salvage company will pay $3 each for the defective radios. Y's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular price of $12.50 each. Y should Sell the units to the salvage company for $3 per unit. B. Correct the defects and sell the radios at the regular price. C. Sell the radios at $3 because repairing them will cause their total cost to exceed their selling price. D. Sell 5,000 radios to the salvage company and repair the remainder. E. Do something else. Alpha Co. can produce a unit of Beta for the following costs: Direct Material Direct Labor Overhead TOTAL $ 4 12 20 36 An outside supplier offers to provide Alpha with all the Beta units it needs at $30 per unit. If Alpha buys from the supplier, Alpha will still incur 50% of its overhead. The proper decision and the total relevant cost to compare with the $30 purchase price are: A Buy, $26. . Make, $26. C. Buy, $36. D. Make, $36 E. Buy, $40

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