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Chang Industries has 1900 defective units of product that already cost $36 each to produce. A salvage company will purchase the defective units as is
Chang Industries has 1900 defective units of product that already cost $36 each to produce. A salvage company will purchase the defective units as is for $16 each. Chang's production manager reports that the defects can be corrected for $28 per unit, enabling them to be sold at their regular market price of $32. The $36 per unit is a: O Opportunity cost. Sunk cost. O Period cost Incremental cost. Out-of-pocket cost
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