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in this presentation we will take a look at a common managerial accounting type problem a problem of scrap or rework and this type of managerial accounting problem we have a situation where we have a number of units which are defective in some way and the question then is do we scrap them now do we take what we can in order to scrap the units or should we rework them so that we can sell them at a higher price hereamp;#39;s going to be the data that we will go through with this scenario we have the unitamp;#39;s produce we have five thousand two hundred and seventy units the cost per unit is forty two dollars the units were damaged so weamp;#39;ve already produced the five thousand two hundred and seventy units weamp;#39;ve already spent the forty two dollars to produce those units those costs then are sunk if theyamp;#39;re already gone that it is what it is at this point in time we have five thousand two hundred and seventy units and they are damaged so what we need to do then is
