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Please I already ask this question, I get the wrong answer. Ch 10 Ex 10-6 Saved Check my work mode: This shows what is correct
Please I already ask this question, I get the wrong answer.
Ch 10 Ex 10-6 Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not in Exercise 10-4 Scrap or rework LO P2 points A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.20 per unit to manufacture. The units can be a) sold as is for $2.90 each, or b) reworked for $4.80 each and then sold for the full price of $8.10 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) % Answer is complete but not entirely correct. Sale as Scrap Rework $ $ (62,400) 105,300 Cost to rework units Sales of reworked units Sales of scrap units Opportunity cost of not making new units Incremental income (loss) 37,700 67,600 110,500 $ 37,700 $ The company should: sell as isStep by Step Solution
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