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Patrick Corporation inadvertently produced 10,000 defective personal radios.The radios cost $8 each to produce.A salvage company will purchase the defective units as they are for
Patrick Corporation inadvertently produced 10,000 defective personal radios.The radios cost $8 each to produce.A salvage company will purchase the defective units as they are for $3 each.Patrick's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50.Should Patrick sell the radios for $3 per unit or correct the defects and sell the radios at the regular price?
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