A company has the choice of either selling 600 defective

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A company has the choice of either selling 600 defective units as scrap or rebuilding them. The company could sell the defective units as they are for $8.00 per unit. Alternatively, it could rebuild them with incremental costs of $2.00 per unit for materials, $2.00 per unit for labor, and $1.00 per unit for overhead, and then sell the rebuilt units for $16.00 each. What should the company do?

Reference no: EM13589515

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