A company must decide between scrapping or reworking units

Assignment Help Accounting Basics

Reference no: EM13608651

A company must decide between scrapping or reworking units that do not pass inspection. The company has 15,000 defective units that cost $5.3 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for $3.50 each and then sold for the full price of $9.1 each. If the units are sold as is, the company will have to build 15,000 replacement units at a cost of $5.3 each, and sell them at the full price of $9.1 each.

(1)What is the incremental income from selling the units as scrap?

Incremental income $

(2)What is the incremental income from reworking and selling the units?

Incremental income $

Reference no: EM13608651

Questions Cloud

Huang automotive is presently operating at 75 of capacity : huang automotive is presently operating at 75 of capacity. the company recently received an offer from a korean truck

The company had average operating assets of 500000 during : the contribution format income statement for westex inc. for its most recent period is given below total unitsales

The mixture occupies a volume of 005 m3 determine the mases : a two-phase liquid vapor mixture of water has a temperature of 300 c and a quality of 75. the mixture occupies a volume

Analysis of stockholders equity star corporation issued : analysis of stockholders equity star corporation issued both common and preferred stock during 19x6. the stockholders

A company must decide between scrapping or reworking units : a company must decide between scrapping or reworking units that do not pass inspection. the company has 15000 defective

Calculate the diffusion coefficient for copper in aluminum : calculate the diffusion coefficient for copper in aluminum at 600 degree celsius. preexponential and activation energy

Kathy myers frequently purchases stocks and bonds but she : kathy myers frequently purchases stocks and bonds but she is uncertain how to determine the rate of return that she is

Elton company issues 7 15-year bonds with a par value of : elton company issues 7 15-year bonds with a par value of 350000 and semiannual interest payments. on the issue date the

The electric field on the axis of a uniformly charged ring : the electric field on the axis of a uniformly charged ring has magnitude 390knc at a point 6.2cm from the ring center.

User Account

All Pages