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BT&T Corporation manufactures telephones. Recently, the company produced a batch of 520 defective telephones at a cost of $8,200. BT&T can sell these telephones as
BT&T Corporation manufactures telephones. Recently, the company produced a batch of 520 defective telephones at a cost of $8,200. BT&T can sell these telephones as scrap for $9 each. It can also rework the entire batch at a cost of $5,700, after which the telephones could be sold for $20 per unit. If BT&T reworks the defective telephones, by how much will its operating income change? Multiple Choice Decrease by $4,700 Increase by $5,720 O (0) Increase by $4,700 O Decrease by $3,500
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