A clothing manufacturer reports that unsalable garments, those found to be defective by inspectors plus those returned by retailers, total 7 percent of the garments produced
Further, it reports that all of its unsalable garments are recycled as scrap, but the percentage of garments reported as recycled scrap is 9 percent
Garments with minor blemishes are sent to wholesale outlets for sale at discounted prices and are not returned for recycling.