Name

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Chapter $25$

Version B

The company has $10,000$ units of its product that it produced at a total cost of $$150,000.$ The units were damaged in a warehouse fire. The company can sell the units currently for $$2\mathrm{.}00$ each. The other alternative is to repair as best as possible and sell them for $$5\mathrm{.}00.$ The repairs will cost $$18,000.$ Which alternative should the company choose? Show your work for credit.

A$.$ As is $32,000$

B$.$ As is $20,000$

C$.$ Repair $32,000$

D$.$ Repair $20,000$

The company currently sells Product A for $$13\mathrm{.}50$ a unit which it manufactures at a cost of $$9\mathrm{.}00$ a unit. The company could choose to sell Product B for $$12\mathrm{.}00$ a unit which it can purchase at a cost of $$5\mathrm{.}00$ per unit. Which product should the company sell? Show work for credit.

A$.$ Sell Product A

B$.$ Sell Product $B$

The company has the following information

$\backslash$table$[[$Sales units