Question: Road Master Shocks has 20 000 units of a defective product

Road Master Shocks has 20,000 units of a defective product on hand that cost $123,500 to manufacture. The company can either sell this product as scrap for $4.18 per unit or it can sell the product for $10 per unit by reworking the units and correcting the defects at a cost of $119,200. What should the company do? Prepare a schedule in support of your recommendation.

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  • CreatedApril 17, 2014
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