Business, 27.11.2019 20:31 smonahan2023

The management of city front inc. must decide between scrapping or reworking units that do not pass inspection. the company has 11,000 defective units that cost $6.00 per unit to manufacture. the units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. what is (are) the relevant cost(s) in this decision? a. rework cost of $3.50 per unit b. manufacturing cost of $6.00 and rework cost of $3.50 per unit c. rework cost of $3.50 and opportunity cost of $2.50 per unit d. manufacturing cost of $3.50 and opportunity cost of $2.50 per unit.

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