Chang Industries Has 2,000 Defective Units of Product That Have

question 130

Multiple Choice

Chang Industries has 2,000 defective units of product that have already cost $14 each to produce.A salvage company will purchase the defective units as they are for $5 each.Chang's production manager reports that the defects can be corrected for $6 per unit,enabling them to be sold at their regular market price of $21.The incremental income or loss on reworking the units is:

• A)$20,000 loss.
• B)$20,000 income.
• C)$12,000 loss.
• D)$32,000 income.
• E)$30,000 incomE.

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Drawbacks

Negative aspects or disadvantages associated with a situation, decision, or action.

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The positive impacts of globalization, including economic growth, cultural exchange, and the spread of technology and innovation across borders.

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