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QS 23-9 (Static) Scrap or rework LO P2 Garcia Company has 10,000 units of its product that were produced at a cost of $1
Posted: Fri Jul 01, 2022 8:46 am
by answerhappygod
- Qs 23 9 Static Scrap Or Rework Lo P2 Garcia Company Has 10 000 Units Of Its Product That Were Produced At A Cost Of 1 1 (23.83 KiB) Viewed 62 times
QS 23-9 (Static) Scrap or rework LO P2 Garcia
Company has 10,000 units of its product that were produced at a cost of $150,000. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $20,000, or it can rework the units at a cost of $38,000 and then sell them for $50,000. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcia sell the units as scrap or rework them and then sell them? (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Income Incremental income (b) The
company should: $ Scrap 0 $ Rework 0