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Secure https://newconnect.mheducation.com/flow/connect.html Saved Help Save & Exit Submi Ahngram Corp. has 1,000 defective units of a product that cost $3.40 per unit in direct costs and $6.90 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.40 per unit or reworked at an additional cost of $2.90 and sold at full price of $13.20. The incremental net income (loss) from the choice of reworking the units would be: Multiple Choice $4,400 $o. ($2.900) $10,300 $2.900

Explanation / Answer

Incremental price per unit = 13.20 per unit

Incremental cost per unit = 2.90 per unit

Incremental profit per unit = (13.20-2.90) = 10.30 per unit

Incremental profit = 10.30*1000 = 10300

so answer is d) $10300

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