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Chang Industries has 2.600 defective units of product that have already cost $1460 each to produce. A salvage company will purchase the defective units as
Chang Industries has 2.600 defective units of product that have already cost $1460 each to produce. A salvage company will purchase the defective units as they are for $5.60 each. Chang's production manager reports that the defects can be corrected for $5 40 per unit, enabling them to be sold at their regular market price of $22.20. The incremental income or loss on reworking the units is 0157:02 Multiple Choice $29,120 loss $29120 income. $14,040 loss. $43,160 income $43,680 income.
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