Selling the material rather than selling it as is as scrap

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Reference no: EM13863684

Degner Inc. has some material that originally cost $19,500. The material has a scrap value of $13,300 as is, but if reworked at a cost of $2,100, it could be sold for $14,000. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?

a. -$20,900

b. $11,900

c. -$7,600

d. -$1,400

Reference no: EM13863684

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