Should patrick sell radios for per unit or correct defects

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Patrick Corporation inadvertently produced 10,000 defective personal radios. The radios cost $8 each to produce. A salvage company will purchase the defective units as they are for $3 each. Patrick's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50.

Question 1: Should Patrick sell the radios for $3 per unit or correct the defects and sell the radios at the regular price?

Reference no: EM132536973

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