Defective products in production

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Reference no: EM1314144

Multiple choices on Defective products in Production.

Patrick Corporation inadvertently produced 10,000 defective personal radios. The radios cost $8 each to produce. A salvage company will purchase the defective units as they are for $3 each. Patrick\'s production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50. Patrick should:

A) Correct the defects and sell the radios at the regular price.
B) Sell the radios for $3 per unit.
C) Throw the radios away.
D) Sell 5,000 radios to the salvage company and repair the remainder.
E) Sell the radios as they are because repairing them will cause their total cost to exceed their selling price.

Reference no: EM1314144

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