Homework Answers
| Sale as scrap | rework | |
| Sale as scrap unit (13000*3.40) | 44200 | |
| Sale of reworked unit (13000*9.40) | 122200 | |
| Cost to rework units (13000*4.70) | (61100) | |
| Opportunity cost of not making new units (13000*3.40) | (44200) | |
| Incremental income (loss) | $44200 | $16900 |
| The company should | sell as is |
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A company must decide between scrapping or reworking units that do not pass Inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.50 per unit to manufacture. The units can be sold as is for $2.60 each, or they can be reworked for $4.70 each and then sold for the full price of $8.10 each. If the units are sold as is, the company will be able to build 19,000 replacement units at a cost of $5.50 each, and sell...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.40 per unit to manufacture. The units can be sold as is for $2.80 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.40 each, and sell...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.10 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.10 each, and sell...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass Inspection. The company has 13,000 defective units that cost $5.60 per unit to manufacture. The units can be a) sold as Is for $2.70 each, or b) reworked for $4 60 each and then sold for the full price of $8.30 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the...
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A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $6.10 per unit to manufacture. The units can be sold as is for $3.20 each, or they can be reworked for $4.60 each and then sold for the full price of $9.30 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $6.10 each, and sell...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $2.90 each, or b) reworked for $4.60 each and then sold for the full price of $8.80 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.30 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $470 each and then sold for the full price of $8.80 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
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PLEASE DO PROBLEM A company must decide between scrapping or reworking units that do not pass...
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A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.10 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.10 each, and sell...
A company with excess capacity must decide between scrapping or reworking units that do not pass Inspection. The company has 13,000 defective units that cost $5.60 per unit to manufacture. The units can be a) sold as Is for $2.70 each, or b) reworked for $4 60 each and then sold for the full price of $8.30 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $3.10 each, or b) reworked for $4.70 each and then sold for the full price of $9.00 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
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A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.30 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $470 each and then sold for the full price of $8.80 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
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