Business, 17.01.2020 19:31 hailey6822

Acompany has the choice of either selling 1,000 defective units as scrap or rebuilding them.

the company could sell the defective units as they are for $4.00 per unit.

alternatively, it could rebuild them with incremental costs of $1.00 per unit for materials, $2.00 per unit for labor, and $1.50 per unit for overhead, and then sell the rebuilt units for $8.00 each.

if the company rebuilds the units, what is the impact on income?

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Acompany has the choice of either selling 1,000 defective units as scrap or rebuilding them.
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