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Legendary Motors has 6,800 defective autos on hand which cost $12,512,000 to manufacture. Legendary can either sell these defective autos as scrap for $7,800 per
Legendary Motors has 6,800 defective autos on hand which cost $12,512,000 to manufacture. Legendary can either sell these defective autos as scrap for $7,800 per auto, or spend an additional $18,120,000 on repairs and then sell them for $11,800 per unit. What is the net advantage to repair the autos compared to selling them for scrap?
$80,240,000.
$18,120,000.
$9,080,000.
$53,040,000.
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