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A company inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be...

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Accounting

A company inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be manufactured. A salvage company will purchase the defective units as they are for $8 each. The production manager reports that the defects can be corrected for $4.50 per unit, enabling the company to sell them at the regular price of $15.00. The repair operations would not affect other production operations. Prepare an analysis that shows which action should be taken. (10 points)

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