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Dime Company produced 200 defective units last month at a unit manufacturing cost of $40. The defective units were discovered before leaving the plant. The
Dime Company produced 200 defective units last month at a unit manufacturing cost of $40. The defective units were discovered before leaving the plant. The company can sell them "as is" for $30 or can rework them at a cost of $25 and sell them at the regular price of $60.
Refer to Dime Company. What is the total relevant cost of reworking the defective units?
Question 2 options:
$2,250 | |
$3,000 | |
$5,000 | |
$6,750 |
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