Help Save & Exit The following information applies to the questions displayed be
ID: 2516926 • Letter: H
Question
Help Save & Exit The following information applies to the questions displayed below) BT&T; Corporation manufactures telephones. Recently, the company produced a batch of 600 defective telephones at a cost of $9,000. BT&T; can sell these telephones as scrap for $9 each. It can also rework the entire batch at a cost of $6,500, after which the telephones could be sold for $20 per unit Which of the following statements is false regarding the defective units? Mutiple Choice BT&T; will not recover its costs if it sells the defective units as scrap BT&T; will recover total costs incurred if it reworks the defective units BT&T; will not recover its costs if t reworks the defective units BT&T; will recover more of its addisional costs if it decides to rework the defective unis MacBook Pro 3 5 6 8 UlExplanation / Answer
BT&T will recover total costs incurred if it reworks the defective unit. The statement is not correct.
Total cost will be 9000 + 6500 = 15,500 $
Whereas after rework price = 20*600 = 12000 $
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.