(Solved):A company must decide between scrapping or reworking units that do not pass inspection. The…

 

Question

A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.90 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for $3.50 each and then sold for the full price of $9.80 each. If the units are sold as is, the company will be able to build 19,000

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