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I have a Managerial Accounting question. I am studying a MBA, are you are able to help?

10.(3points)YXZCompany'smarketfortheModel55haschangedsignificantly,andYXZhas had to drop the price per unit from $275 to $135. There are some units in the work in processinventorythathavecostsof$160perunitassociatedwiththem.YXZcouldsellthese units in their current state for $100 each. It will cost YXZ $10 per unit to complete theseunitssothattheycanbesoldfor$135each. Anewemployeelooksattheanalysisandexclaims,"We'lllosemoneywitheitherofthesealternatives!Let'sjustthrowtheseunits in the trash!" What effect will this option have on net income?

a. Profit will decrease by $160 per unit for each unit discarded.

b. Profit will decrease by $275 per unit for each unit discarded.

c. Profit will increase by $10 per unit since the completion costs will not have to be incurred.

d. Profit will increase by $25 per unit for each unit discarded.

e. None of the above

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