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Nantucket Corporation has some material that originally cost $450,000. The material has a scrap value of $85,000 as is, but if reworked at a cost
Nantucket Corporation has some material that originally cost $450,000. The material has a scrap value of $85,000 as is, but if reworked at a cost of $50,000, it could be sold for $95,000. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?
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