M http://ezto.mheducation.com/hm.tpx N Chapters 24-25 Homework Chegg Study Guide

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M http://ezto.mheducation.com/hm.tpx N Chapters 24-25 Homework Chegg Study Guided Solution. Mail-Smith, Courtney A (Wes : File Edit View Favorites Tools Help E' Younique by Courtney s.. Gastric Sleeve weight Los west Kentucky Communi welcome to Facebook - G Google e Home Chegg Wild: Fundamental Accounting Principles, 22e ACC 202 -S2016 16 Wk Online 80539 Courtney Slater ACCOUNTING Chapters 24-25 Homeworlk Instructions I help Question 21 (of 23) Save & Exit Submit 21· value 5.00 points Signal mistakenly produced 1,325 defetive cell phones. The phones cost $67 each to produce. A salvage company will buy the defective phones as they are for $38 each. It would cost Signal $80 per phone to rework the phones. If the phones are reworked, Signal could sell them for $132 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones Scrap Rework Sales Rework costs Total 11:55 PM 4/19/2016

Explanation / Answer

Scrap rework no of pieces sales 38 132 1325 rework cost 80 total 38 52 If it reworks the phone the incremental revenue will be $52 so the loss will be original cost - incremental revenue=67-52=$ 15 loss If it is sold to salvage company the loss will be 67-38=$29 for the total pieces reworking loss will be 1325*15=$19,875 for the total pieces if sold to salvage co loss will be 1325*29=$38,425

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