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The incremental effect on the company's overall profit from reworking and selling the material instead of selling it as scrap depends on the cost of reworking versus the potential selling price of the finished product. If the reworking costs are significantly lower than the difference between the selling price of the reworked material and the scrap price, it would lead to a net profit increase. Conversely, if reworking costs are higher or the market for the finished product is weak, the incremental profit could be negligible or even negative. Thus, a detailed cost-benefit analysis is essential to determine the true impact on overall profit.

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3w ago

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