A company has the choice of either selling 600 defective units as scrap or rebuilding them. The
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A company has the choice of either selling 600 defective units as scrap or rebuilding them. The company could sell the defective units as they are for $2.00 per unit. Alternatively, it could rebuild them with incremental costs of $0.60 per unit for materials, $1.00 per unit for labor, and $0.80 per unit for overhead, and then sell the rebuilt units for $5.00 each. What is the amount of incremental income (loss) from rebuilding? Multiple Choice $3.00 per unit $7.00 per unit $10.60) per unit. $0.60 per unit $3.00) per unit
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