Sale as Scrap | Rework | |
Sales revenue | 13,000 x 2.70 = 35,100 | 13,000 x 8.30 = 107,900 |
Cost of rework | 0 | 13,000 x 4.60 = -59,800 |
Net income | 35,100 | 48,100 |
Incremental income | 13,000 | |
The company should | Rework and then sell |
Kindly comment if you need further assistance. Thanks‼!
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 $5.90 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...
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 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...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 10,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $5.00 each and then sold for the full price of $8.90 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 must decide between scrapping or reworking units that do not pass Inspection. The company has 13.000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $3.40 each, or they can be reworked for $4.70 each and then sold for the full price of $9.40 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $6.00 each, and sell...
Chap 23 Homework 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 $6.10 per unit to manufacture. The units can be a) sold as is for $2.50 each, or b) reworked for $4.90 each and then sold for the full price of $8.60 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should 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 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 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...
PLEASE DO PROBLEM 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 $3.00 each, or they can be reworked for $5.00 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 16,000 replacement units at a cost of $5.10...