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General Electric has 1,200 defective units of product that have already cost $13.20 each to produce. A salvage company will purchase the defective units as
General Electric has 1,200 defective units of product that have already cost $13.20 each to produce. A salvage company will purchase the defective units as they are for $4.20 each. General Electric's production manager reports that the defects can be corrected for $6.80 per unit, enabling them to be sold at their regular market price of $19.40. The incremental income or loss on reworking the units is: Multiple Choice O $8,160 loss. O $10,080 income. O $18,240 income. O $15,120 income. $10,080 loss
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