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What is the total peso amount of the advantage

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Question - A company has 7,000 obsolete toys carried in inventory at manufacturing cost of P6 per unit. If the toys are reworked for P2 per unit they could be sold for P3 per unit. If the toys are scrapped, they could be sold for P1.85 per unit. Which alternative is more desirable (rework or scrap), and what is the total peso amount of the advantage of that alternative?

Reference no: EM132050912

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