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A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13.000 defective units that cost
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13.000 defective units that cost $5.80 per unit to manufacture. The units can be a) sold as is for $2.50 each, or bi reworked for $4.90 each and then sold for the full price of $8 30 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (loss) $ OS 0 The company should Childress Company produces three products K1, S5, and G9 Each product uses the same type of direct material. K1uses 37 pounds of the material, s5 uses 26 pounds of the material, and G9 uses 61 pounds of the material Demand for all products is strong, but only 47.900 pounds of material are available Information about the selling price per unit and variable cost per unit of each product follows Selling price Varble conta 1 $148.87 93.00 $113.62 91.00 691 5222.20 149.00 Calculate the contribution margin per pound for each of the three products Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.) Contribution marjin per pound Product K1 Product S6 Product G9 Contribution margin per pound Order in which products should be produced and filled
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