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Keim, Inc. manufactures baseball gloves that normally sell for $40 each. Keim currently has 1,000 defective gloves in inventory that have $30 of materials, labor, and overhead assigned to each glove. The defective gloves can either be completely repaired at a cost of $25 per glove or sold as is at a reduced price of $18 per glove. Keim would be better off a. $3,000 to sell the gloves at the reduced price. b. $2,800 to sell the gloves at the reduced price. c. $15,000 to repair the gloves and sell them at the normal price. d. $13,000 to repair the gloves and sell them at the normal price. e. $15,000 to sell the gloves at the reduced price.
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