Business, 27.04.2021 15:10, anna2894

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $4.60 each and then sold for the full price of $8.90 each. What is the incremental income from selling the units as scrap and reworking and selling the units

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A company with excess capacity must decide between scrapping or reworking units that do not pass ins...