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Garcia Company has 11,800 units of its product that were produced last year at a total cost of $177,000. The units were damaged in a
Garcia Company has 11,800 units of its product that were produced last year at a total cost of $177,000. The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in the roof. Garcia can sell the units as is for $4 each or it can repair the units at a total cost of $19,800 and then sell them for $7 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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