Question: please help understand A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have
please help understand
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 $40,000 or reworked for $73,600 and then sold for $132,800 (a) Prepare a scrap or rework analysis of income effects: (b) Should the company sell the units as scrap or rework them
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