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Business, 12.12.2019 05:31 bs815900

Acompany with excess capacity must decide between scrapping or reworking units that do not pass inspection. the company has 13,000 defective units that cost $5.50 per unit to manufacture. the units can be a) sold as is for $2.60 each, or b) reworked for $4.60 each and then sold for the full price of $8.10 each.

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