Legendary Motors has 7,900 defective autos on hand, which cost $14,536,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,900 per auto, or spend an additional $19,220,000 on repairs and then sell them for $12,900 per unit. What is the net advantage to repair the autos compared to selling them for scrap?

Answer rating: 100% (QA)

To determine whether its more advantageous to repair the defective autos and sell them or to sell th... View the full answer