M http://ezto.mheducation.com/hm.tpx Mail - Smith, Courtney A (Wes.... Chegg Stu

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M http://ezto.mheducation.com/hm.tpx Mail - Smith, Courtney A (Wes.... Chegg Study | Guided Solution.. File Edit View Favorites Tools Help Wish-Shopping Made FunYounique by Courtney s.. Gastric Sleeve weight Los west Kentucky Communi. welcome to Facebook-L G Google Home Chegg x Find: planning fu Options Previous Next Exam 3 instructions I help Question 36 (of 40) Save & Exit Submit Time remaining: 2:19:50 36 Chang Industries has 2,500 defective units of product that have already cost $14.50 each to produce. A salvage company will purchase the defective units as they are for $5.50 each. Chang's production manager reports that the defects can be corrected for $5.50 per unit, enabling them to be sold at their regular market price of $22.00. The incremental income or loss on reworking the units is $27,500 loss $27,500 income $13,750 loss $41,250 income $41,250 income 4:16 PM 5/3/2016

Explanation / Answer

(Incremental Income - Incremental Expense) x No. of Units

($22-$5.50) x 2500 = $41250 Income

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