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Legendary Motors has 7,900 defective autos on hand, which cost $14,536,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,900 per
Legendary Motors has 7,900 defective autos on hand, which cost $14,536,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,900 per auto, or spend an additional $19,220,000 on repairs and then sell them for $12,900 per unit. What is the net advantage to repair the autos compared to selling them for scrap?
a. 19,220,000
b. 12,380,000
c. 101,910,000
d. 70,310,000
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