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Legendary Motors Has 7,000 Defective Autos on Hand Which Cost

Question 22

Multiple Choice

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?


A) $84,000,000.
B) $18,320,000.
C) $9,680,000.
D) $56,000,000.

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