Ahngram Corp

question 14

Multiple Choice

Ahngram Corp.has 1,000 defective units of a product that cost $3 per unit in direct costs and $6.50 per unit in indirect cost when produced last year.The units can be sold as scrap for $4 per unit or reworked at an additional cost of $2.50 and sold at full price of $12.The incremental net income (loss) from the choice of reworking the units would be:

• A)$5,500.
• B)$0.
• C)($2,500).
• D)$10,500.
• E)$2,500.

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Definitions:

Trade Surplus

Trade surplus occurs when a country exports more goods and services than it imports.

WTO Meeting

A gathering organized by the World Trade Organization aimed at discussing and negotiating matters related to international trade between its member countries.

Protesters

Individuals or groups that publicly demonstrate opposition to policies, actions, or events, typically through organized gatherings or marches.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the exporting nation's GDP.