Incremental revenues and expenses problem

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Reference no: EM13129376

YXZ Company's market for the Model 55 has changed significantly, and YXZ has had to drop the price per unit from $275 to $135. There are some units in the work in process inventory that have costs of $160 per unit associated with them. YXZ could sell these units in their current state for $100 each. It will cost YXZ $10 per unit to complete these units so that they can be sold for $135 each.

When the incremental revenues and expenses are analyzed, what is the financial impact?

1-$25 per unit profit if the units are completed

2-$125 per unit if the units are completed

3-$65 per unit loss if the units are completed

4-$150 per unit loss if the units are completed

Reference no: EM13129376

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