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A company has the choice of either selling 750 defective units as scrap or rebuilding them. They have already spent $14 per unit making these items. The company could sell the defective units as they are for $8.00 per unit. Alternatively, the company could rebuild the units at an incremental cost of $1.00 per unit. If it rebuilds the units, they will not be able to produce 750 new units with a unit cost of $3.00 and a normal selling price of $15.00 each. What should the company do?
If a company pays 8 percent interest to borrow $500,000, but is in an income tax bracket that requires it to pay 40 percent income tax, what is the actual net-of-tax interest cost that the company incurs?
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limbo reports in millions of dollars on its balance sheet for year-end year 5 and year 4 as followsyear 5 year 4credit
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