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:

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 0 0 ($2,900). 0 $2,900. 0 $10,300. 0 $4,400