Connect C Secure https://newconnect.mheducation.com/flow/connect.html Exam 4 Hel

Question

Connect C Secure https://newconnect.mheducation.com/flow/connect.html Exam 4 Help Save& Exit Submit defective units of product that have already cost $13.80 each to produce. A 17 salvage company will purchase the defective units as they are for $4.80 each. Chang's production manager reports that the defects can be corrected for $6.20 per unit, enabling them to be sold at their regular market income or loss on reworking the units is: Multiple Choice $17,280 loss $17,280 income. $11,160 loss $28,440 income. 525,920 income. Type here to search

Explanation / Answer

Answer is $17,280 income.

Explanation:

Incremental revenue generated from rework of 1800 units (@20.60-4.80) 28440 Less: Incremental cost incurred (1800 untis @6.20) 11160 Incremental profits from rework 17280

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