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:

Treatment Outcome

The results or effects of a particular intervention, therapy, or action, often evaluated in the context of clinical trials or medical treatment.

Pharmacotherapy

The treatment of diseases and their symptoms using medications.

Variance

A statistical measure of the dispersion of data points in a data set, helping to understand the degree of spread around the mean.

Treatment Manuals

Standardized guides used by clinicians to administer therapy consistently across different individuals with a particular psychological disorder.