Question
Talmont products has dropped the price per unit of its smart phone products from $1,060 to $500.00. There are some units in work in process
Talmont products has dropped the price per unit of its smart phone products from $1,060 to $500.00. There are some units in work in process inventory that have costs of $600.00 per unit associated with them. Talmont could sell these units in their current state for $400.00. It will cost Talmont $40.00 to complete these units so they can be sold for $500.00 dollars each. When the incremental revenues and costs are analyzed, the company is better off by: A. $500.00 per unit if they complete the units B. $40.00 per unit if they sell the units in their current state C. $200.00 per unit if they sell the units in their current state D. $60.00 per unit if they complete the units?
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