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Garcla Company has 11,200 units of Its product that were produced at a cost of $168,000. The units were damaged in a rainstorm. Garcla can
Garcla Company has 11,200 units of Its product that were produced at a cost of $168,000. The units were damaged in a rainstorm. Garcla can sell the units as scrap for $33,600, or it can rework the units at a cost of $52,800 and then sell them for $69,500. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcla sell the units as scrap or rework them and then sell them
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