The management of City Front incorporated must decide between scrapping or reworking units that do...
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Accounting
The management of City Front incorporated must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full peice of $970 each. What is the incremental income from reworking and selling the units? $68,200 $40,700 $27.500 $1067700
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