Marathon Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a rain storm because the warehouse where they were stored developed a leak in the roof. Marathon can sell the units as is for $2 each or it can repair the units at a total cost of $18,000 and then sell them for $5 each. Should Marathon sell the units as is or repair them and then sell them? Explain.
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