Chang Industries has 3,000 defective units of product that have already cost $15.00 each to produce. A salvage company will purchase the defective units as they are for $6.00 each. Chang's production manager reports that the defects can be corrected for $5.00 per unit, enabling them to be sold at their regular market price of $23.00. The incremental income or loss on reworking the units is:

rev: 04_08_2020_QC_CS-207434

Multiple Choice

• $54,000 income.

• $36,000 loss.

• $36,000 income.

• $15,000 loss.

• $51,000 income.