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Nielson has 5,000 defective televisions on hand, which cost $380,000 to manufacture. Nielson can either sell these defective televisions as scrap for $65 per unit,
Nielson has 5,000 defective televisions on hand, which cost $380,000 to manufacture.
Nielson can either sell these defective televisions as scrap for $65 per unit, or spend an additional $120,000 on repairs and then sell the televisions for $135 per unit.
Should Nielson repair the defective TVs to sell them as scrap?
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