Road Master Shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture.  The company can either sell this product as is for scrap for $6 per unit or it can sell the product for $9 per unit after reworking the units to correct the defects at a cost of $50,000. What should the company do?  Show your calculations

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. Road Master Shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture.  The company can either sell this product as is for scrap for $6 per unit or it can sell the product for $9 per unit after reworking the units to correct the defects at a cost of $50,000. What should the company do?  Show your calculations

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