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Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps in inventory, which cost $55 each to manufacture. These defective
Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps in inventory, which cost $55 each to manufacture. These defective units can be sold as-is for $20 each, or they can be processed further for a cost of $45 each and then sold for the normal selling price. Would Polly Enterprises be better off by repairing the lamps or selling them as is?
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