A company with excess capacity must decide between scropping or reworking units that do not pass inspection. The company

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A Company With Excess Capacity Must Decide Between Scropping Or Reworking Units That Do Not Pass Inspection The Company 1 (27.87 KiB) Viewed 67 times

A company with excess capacity must decide between scropping or reworking units that do not pass inspection. The company has 10,000 defective units that cost $520 per unit to manufacture. The units can be a) sold as is for $2.90 each, or b) reworked for $4.50 each and then sold for the full price of $8.10 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (loss) The company should