Tori Inc Has Some Material That Originally Cost $68,400

question 87

Multiple Choice

Tori Inc. has some material that originally cost $68,400. The material has a scrap value of $30,100 'as is', but if reworked at a cost of $1,400, it could be sold for $30,800. 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? (CIMA adapted)

• A) $(69,100)
• B) $(700)
• C) $29,400
• D) $(39,000)

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Definitions:

Variable

An element or feature that can change and have different values in a data set or experiment, affecting the results.

Vertical Axis

The y-axis in a coordinate plane, representing the range of values for variables plotted vertically.

Horizontal Axis

The x-axis in a graph or chart, typically used to represent the independent variable in data plotting.

Line Chart

A type of chart used in statistics that displays information as a series of data points connected by straight line segments, useful for visualizing trends over time.