Business, 12.12.2020 17:10 si1baalmasri

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.20 per unit to manufacture. The units can be a) sold as is for $2.80 each, or b) reworked for $4.80 each and then sold for the full price of $8.00 each.

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

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