Ch. 10 Homework 2 1.66 points Saved Exercise 10-4 (Static) Scrap or rework LO P2 A company must decide between scrapping

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Ch 10 Homework 2 1 66 Points Saved Exercise 10 4 Static Scrap Or Rework Lo P2 A Company Must Decide Between Scrapping 1 (34.45 KiB) Viewed 31 times

Ch. 10 Homework 2 1.66 points Saved Exercise 10-4 (Static) Scrap or rework LO P2 A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $78,000 or reworked for $99,000 and then sold for $187,000. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? (a) Scrap or Rework Analysis Scrap Revenue from scrapped/reworked units Cost of reworked units Income Incremental income (b) The company should: eBook Hint Print References $ Rework the units 0 $ Rework