Legendary Motors has 7,000 defective autos on hand, which cost $12,880,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,000 per auto, or spend an additional $18,320,000 on repairs and then sell them for $12,000 per unit. What is the net advantage to repair the autos compared to selling them for scrap? Group of answer choices $84,000,000 $18, 320,000 $9, 680,000 $56,000,000
Legendary Motors has 7,000 defective autos on hand, which cost $12,880,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,000 per auto, or spend an additional $18,320,000 on repairs and then sell them for $12,000 per unit. What is the net advantage to repair the autos compared to selling them for scrap? Group of answer choices $84,000,000 $18, 320,000 $9, 680,000 $56,000,000
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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