Question

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

Answer 1

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.