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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
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: Multiple Choice $36,000 Income $51,000 income $36,000 loss $15,000 loss. $54,000 income
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