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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
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