Emmanuel Obrien

Business

17 June, 05:30

Ahngram Corp. has 1,000 defective units of a product that cost $2.10 per unit in direct costs and $5.60 per unit in indirect cost when produced last year. The units can be sold as scrap for $3.10 per unit or reworked at an additional cost of $1.60 and sold at full price of $9.30. The incremental net income (loss) from the choice of reworking the units would be:

A. $4,600.

B. $0.

C. $1,600.

D. $7,700.

E. $1,600.

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