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Economics

BT&T Corporation manufactures telephones. Recently, the company produced a batch of 600 defective telephones at a cost of $9,000. BT&T can sell these telephones as scrap for $9 each. It can also rework the entire batch at a cost of $6,500, after which the telephones could be sold for $20 per unit. Which of the following statements is false regarding the defective units?

BT&T will recover total costs incurred if it reworks the defective units.

BT&T will not recover its costs if it sells the defective units as scrap.

BT&T will not recover its costs if it reworks the defective units.

BT&T will recover more of its additional costs if it decides to rework the defective units.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91726959

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