Question: Please explain your answer in a legible manner. Thank you so much for your time !!! Exercise 23-6 Scrap or rework A1 A company must
Please explain your answer in a legible manner. Thank you so much for your time !!!
Exercise 23-6 Scrap or rework A1 A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that cost $6 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for $4.50 each and then sold for the full price of $8.50 each. If the units are sold as is, the company will be able to build 22,000 replacement units at a cost of $6 each, and sell them at the full incremental income from reworking and selling the units? (3) Should the company sell the units as scrap or rework them
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