Question: Please answer it in a chart form. Thanks Ch 23 Quiz 1 A company must decide between scrapping or reworking units that do not pass
Please answer it in a chart form. Thanks

Ch 23 Quiz 1 A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $52,800 or reworked for $80,000 and then sold for $148,800. 3.12 points (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? Hint (a) Scrap or Rework Analysis Scrap Rework Revenue from scrapped/reworked units Cost of reworked units Income Incremental income (b) The company should: K
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
