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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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