Garcia Company has 11,900 units of its product that were produced at a cost of...
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Garcia Company has 11,900 units of its product that were produced at a cost of $178,500. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $35,700, or it can rework the units at a cost of $55,600 and then sell them for $73,200. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcia sell the units as scrap or rework them and then sell them
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Garcia Company has 11,900 units of its product that were produced at a cost of $178,500. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $35,700, or it can rework the units at a cost of $55,600 and then sell them for $73,200. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcia sell the units as scrap or rework them and then sell them 