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A company has the choice of either selling 4,000 defective units as scrap or rebuilding them. They could sell the defective units at $2 per unit or they could rebuild them at additional costs of $.50 per unit for materials, $1 per unit for labor, and $.75 per unit for overhead, and then sell the rebuilt units for $4 per unit. Which should the company do?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9975470

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