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The H&S Motor Company produces small motors at a production cost of $ 3 0 per unit. Defective motors can be reworked at a cost
The H&S Motor Company produces small motors at a production cost of $ per unit. Defective motors can be reworked at a cost of $ each. The company produces motors per day and averages percent good quality motors. Based on past experience, of the defective motors can be reworked prior to shipping to customers. These are also considered good motors. A good motor can be sold for $ while a defective motor can be scrapped and sold for $ Income consists of both the revenue from the sold motors and the scrapped motors.
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