Silent Sentry manufactures gas leak detectors that are sold to homeowners throughout the United States at $25 apiece. Each detector is equipped with a sensory cell that is guaranteed to last two full years before needing to be replaced. The company currently has 50,000 gas leak detectors in its inventory that contain sensory cells that had been purchased from adiscountvendor. Silent Sentry engineers estimate that these sensory cells will last only 18 months before needing to be replaced. The company has incurred the following unit costs related to the 50,000 detectors:

Direct materials	$	10
Direct labor		2
Variable overhead		3
Fixed overhead		1
Total	$	16

Silent Sentry is currently evaluating three options regarding the 50,000 detectors:

1.	Scrap the inferior sensory cell in each unit and replace it with a new one at a cost of $8 each. The units could then be sold at their full unit price of $25.
2.	Sell the units with the inferior sensory cells at a discounted unit price of $24. This option would also involve changing the packaging of each unit to inform the buyer that the estimated life of the sensory cell is 18 months. The estimated out-of-pocket cost associated with the packaging changes is $3 per unit.
3.	Sell each unit as is with its current packaging to a discount buyer in a foreign country. The buyer has offered topaySilent Sentry a unit price of $22.

a-1	Perform an incremental analysis of these options.(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

	Repair and Sell	Repackage and Sell	Sell to Foreign Buyer
Incremental revenue per unit	$	$	$
Incremental cost per unit
Net incremental benefit per unit	$	$	$
Multiplied by total number of units
Net incremental benefit	$	$	$

a-2

Based on the analysis, which option should Silent Sentry choose?

	Repair and sell
	Repackage and sell
	Sell to foreign buyers