Business, 15.04.2020 03:40 kat9323

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 $5.70 per unit to manufacture. The units can be a) sold as is for $3.30 each, or b) reworked for $5.00 each and then sold for the full price of $9.00 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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