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A company has the choice of either selling 430 defective units as scrap or rebuilding them. The company could sell the defective units as they
A company has the choice of either selling 430 defective units as scrap or rebuilding them. The company could sell the defective units as they are for $2.10 per unit. Alternatively, it could rebuild them with incremental costs of $0.60 per unit for materials, $2.00 per unit for labor, and $2.00 per unit for overhead, and then sell the rebuilt units for $12.00 each. What is the amount of incremental revenue from rebuilding?
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$9.90 per unit.
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$12.00 per unit.
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$14.10 per unit.
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$4.60 per unit.
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$5.30 per unit.
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