Essay
Scrap or rework decision
Nielson has 5,000 defective televisions on hand,which cost $380,000 to manufacture.Nielson can either sell these defective televisions as scrap for $65 per unit,or spend an additional $120,000 on repairs and then sell the televisions for $135 per unit.
Should Nielson repair the defective TVs to sell them as scrap?
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