Legendary Motors Has 7,000 Defective Autos on Hand Which Cost

question 22

Multiple Choice

Legendary Motors has 7,000 defective autos on hand which cost $12,880,000 to manufacture. Legendary can either sell these defective autos as scrap for $8,000 per auto, or spend an additional $18,320,000 on repairs and then sell them for $12,000 per unit. What is the net advantage to repair the autos?

• A) $84,000,000.
• B) $18,320,000.
• C) $9,680,000.
• D) $56,000,000.

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Definitions:

Parents Value Education

The importance or emphasis placed by parents on the education and academic success of their children.

Studies

Systematic investigations into and analysis of materials and sources in order to establish facts and reach new conclusions.

Activities

Tasks or actions that are carried out by individuals, often for the purpose of leisure, personal gratification, or goal achievement.

Conscience

The internal aspect of an individual that reflects on and judges the morality of that individual's actions.