Business, 01.07.2020 21:01 donuteatingcat

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $3.30 each, or b) reworked for $4.90 each and then sold for the full price of $9.20 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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