Chang Industries has 2,700 defective units of product that have already cost $14.70 each to...
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Accounting
Chang Industries has 2,700 defective units of product that have already cost $14.70 each to produce. A salvage company will purchase the defective units as they are for $5.70 each. Chang's production manager reports that the defects can be corrected for $5.30 per unit, enabling them to be sold at their regular market price of $22.40. The incremental income or loss on reworking the units is:
A. $30,780 Loss
B. $30,780 Income
C. $14,310 Loss
D. $45,090 Income
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