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Legendary Motors has 6,000 defective autos on hand which cost $11,040,000 to manufacture. Legendary can either sell these defective autos as scrap for $7,000 per
Legendary Motors has 6,000 defective autos on hand which cost $11,040,000 to manufacture. Legendary can either sell these defective autos as scrap for $7,000 per auto, or spend an additional $17,320,000 on repairs and then sell them for $11,000 per unit. What is the net advantage to repair the autos compared to selling them for scrap? |
$66,000,000.
$17,320,000.
$6,680,000.
$42,000,000.
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