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Acompany must decide between scrapping or reworking units that do not pass inspection. the company has 10,000 defective units that cost $5.20 per unit to manufacture. the units can be sold as is for $2.60 each, or they can be reworked for $4.90 each and then sold for the full price of $7.80 each. if the units are sold as is, the company will be able to build 10,000 replacement units at a cost of $5.20 each, and sell them at the full price of $7.80 each. what is the incremental income from selling the units as scrap and reworking and selling the units
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Acompany must decide between scrapping or reworking units that do not pass inspection. the company h...
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