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QS 23-5 Sell or process LO P2 Garcia Company has 12,000 units of its product...

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QS 23-5 Sell or process LO P2 Garcia Company has 12,000 units of its product that were produced last year at a total cost of $180,000. The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in the roof. Garcia can sell the units as is for $2 each or it can repair the units at a total cost of $20,000 and then sell them for $6 each. Calculate the incremental net income if the units are repaired Sell as is Process further Incremental Net Income $ 24,000 Sales Additional processing costs Total $ 24,000 $ 0

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