Ahngram Corp. has 1,000 defective units of a product that cost $3.50 per unit in...
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Accounting
Ahngram Corp. has 1,000 defective units of a product that cost $3.50 per unit in direct costs and $7.00 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.50 per unit or reworked at an additional cost of $2.90 and sold at full price of $13.50. The incremental net income (loss) from the choice of reworking the units would be:
0
-3000
6000
600
3000
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