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Legendary Motors has 7,700 defective autos on hand, which cost $14,168,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,700 per
- Legendary Motors has 7,700 defective autos on hand, which cost $14,168,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,700 per auto, or spend an additional $19,020,000 on repairs and then sell them for $12,700 per unit. What is the net advantage to repair the autos compared to selling them for scrap?
- $97,790,000
- $66,990,000
- $11,780,000
- $19,020,000
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