The incremental net income from the choice of reworking

Reference no: EM131023103

Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.30 per unit or reworked at an additional cost of $2.80 and sold at full price of $12.90. The incremental net income (loss) from the choice of reworking the units would be:

$5,800.
$0.
($2,800).
$10,100.
$2,800.

Reference no: EM131023103

Questions Cloud

What was the interest expense for the year : The Cant Get More Fun Than This Company reported EBIT of $20 million and net income of $11 million. If the corporate tax rate is 35% for this company in this tax bracket, what was the interest expense for the year?

Earnings available to common stockholders : Preferred stock dividends __________ earnings available to common stockholders.

Type of assets should be financed with long-term financing : Ideally, which of the following type of assets should be financed with long-term financing?

Change in earnings per share of rat race home security : Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $335. Variable cost per unit $192 Units sold 349 Fixed costs $6,564 Interest expense 17,146 Based on the data above, what will be..

The incremental net income from the choice of reworking : The incremental net income (loss) from the choice of reworking the units would be:a. $5,800.b. $0.c. ($2,800).d. $10,100.e. $2,800.

Net working capital to start-additional net working capital : Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 90,000 2 103,000 3 117,000 4 112,000 5 93,000 Production of the implants will require $1,690,000 in net working capital to st..

Paxton company can produce a component : Compute the net incremental cost or savings of buying the component. a. $2.90 cost per unit. b. $7.90 savings per unit. c. $0 cost or savings per unit. d. $7.90 cost per unit. e. $2.90 savings per unit.

About rat race home security : Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $318. Variable cost per unit $191 Units sold 480 Fixed costs $9,389 Interest expense $15,645 Based on the data above, what is the..

Personal experience involving a natural or man-made crisis : As more companies expand internationally, having a global mindset is more important than it has been at any previous point in history. Share with us a personal experience involving a natural or man-made crisis or disaster that interrupted your normal..

User Account

All Pages