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BT&T Corporation manufactures telephones. Recently, the company produced a batch of 620 defective telephones at a cost of $9,200. BT&T can sell these telephones as
BT&T Corporation manufactures telephones. Recently, the company produced a batch of 620 defective telephones at a cost of $9,200. BT&T can sell these telephones as scrap for $8 each. It can also rework the entire batch at a cost of $6,700, after which the telephones could be sold for $19 per unit. If BT&T reworks the defective telephones, by how much will its operating income change? Multiple Choice Increase by $6,820 Decrease by $5,080 Increase by $5,080 Decrease by $4,120
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