Legendary Motors Has 7,000 Defective Autos on Hand,which Cost $12,880,000

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 compared to selling them for scrap?

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