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A company must decide between scrapping or reworking units that do not pass inspection. The company has 15.000 defective units that cost $5.30 per unit
A company must decide between scrapping or reworking units that do not pass inspection. The company has 15.000 defective units that cost $5.30 per unit to manufacture. The units can be sold as is for $3.00 each, or they can be reworked for $470 each and then sold for the full price of $8.30 each. If the units are sold as is the company will be able to build 16,000 replacement units at a cost of $5.30 each and sell them at the full price of $8 30 each What is the incremental income from selling the units as scrap and reworking and selling the unit? Should the company sel the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (loss) The company should
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