Mallorys Video Supply has changed its focus tremendously and as a result has dropped the...
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Mallorys Video Supply has changed its focus tremendously and as a result has dropped the selling price of DVD players from $45 to $38. Some units in the work-in-process inventory have costs of $30 per unit associated with them, but Mallory can only sell these units in their current state for $22 each. Otherwise, it will cost Mallory $11 per unit to rework these units so that they can be sold for $38 each. How much is the financial impact if the units are processed further?
a.
$5 per unit profit
b.
$3 per unit loss
c.
$16 per unit profit
d.
$12 per unit loss
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