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Garcia Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a
Garcia Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a rain storm because the warehouse where they were stored developed a leak in the roof. Garcia can sell the units as is for $2 each or it can repair the units at a total cost of $18,000 and then sell them for $5 each. Calculate the incremental net income if the units are repaired Sell as is Process further Incremental Net Income Sales Additional processing costs Total $ 0$ 0
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