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Benson Company has 100 units of an obsolete part. The variable cost to produce them was $4 per unit. They could now be sold for
Benson Company has 100 units of an obsolete part. The variable cost to produce them was $4 per unit. They could now be sold for $3 each and it would cost $6 to make them now. The parts could be reworked for $8 each and sold for $17. What is the monetary advantage of reworking the parts over the next-best action?
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