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Business, 03.08.2021 22:20 Ryan02717

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $6.00 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $4.90 each and then sold for the full price of $9.50 each.

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