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 is the relevant cost to K Corp. in deciding whether or not to repair the units? (State this cost as a total amount for all 1,000 units.) $____________

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The Answer of 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 is the relevant cost to K Corp. in deciding whether or not to repair the units? (State this cost as a total amount for all 1,000 units.) $____________

A Job of 1,000 VCRs Manufactured by K Corp