Warner Company Has Some Material That Originally Cost $41,500

question 49

Multiple Choice

Warner Company has some material that originally cost $41,500.The material has a scrap value of $21,600 as is, but if reworked at a cost of $4,600, it could be sold for $29,100.What would be the incremental effect on the company's overall profit if it is reworked?

• A)$17,000 decrease.
• B)$38,600 decrease.
• C)$2,900 increase.
• D)$24,500 increase.

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