Change Industries has 2.500 defective unit as they are for 55.50 each. chag\'s p

Question

Change Industries has 2.500 defective unit as they are for 55.50 each. chag's production manager reports that the defects can be corrected for $5.50 per unit, enabling them to be solid at their regular market price of $22.00 The incremental income or loss co reworking the units is: A.$27,500 loss B. $27,500 C. $13,750 less. D. $41, 250 income. 16) A company is planning to purchase a machine that will cost $30,600. Have a six-year life, and be depreciated over a three year period with no salvage value. The company expects to sell the machine's output of 3,000 units evety throughout each year. A projected income statement for each year of the assest's life appears below what is the payback period for this machine? A. 3.59 year B. 3.67 years. C. 1.41 years. D. 6.00 years.

Explanation / Answer

Part 1

Part 2

Revenue from rework (22-5.50)*2500 41250 Less Revenue from Salvage sales 2500*5.50 13750 Incremental revenue 27500

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