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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

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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: Multiple Choice $1,600. $3100 $7,700. S1.600 $0

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