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A Job of 1,000 VCRs Manufactured by K Corp

Question 13

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A job of 1,000 VCRs manufactured by K Corp. contains defective parts. The cost incurred in manufacturing these defective units is $140,000. K Corp. can sell these units as scrap materials for $45 per unit or repair all 1,000 units at a total cost of $70,000. If the units are repaired, they can be sold at the normal price of $200 per unit.
-What will be the average per unit manufacturing cost of the VCR, including repair costs, assuming that K Corp. does the repairs? $____________ per unit

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($140,000 ...

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