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Luxury Motors has 7,400 defective autos on hand, which cost $13,616,000 to manufacture, Luxury can either sell these defective autos as scrap for $8,400 per
Luxury Motors has 7,400 defective autos on hand, which cost $13,616,000 to manufacture, Luxury can either sell these defective autos as scrap for $8,400 per auto, or spend an additional $18,720,000 on repairs and then sell them for $12,400 per unit. What is the net advantage to repair the autos compared to selling them for scrap? Multiple Choice $62,160,000 $10,880,000 $91,760,000 $18,720,000
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