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A company must decide between scrapping or reworking units that do not pass inspection. The...

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Accounting

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $47,500 or reworked for $89,300 and then sold for $161,500. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them

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