Ahngram Corp

question 3

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) $9,500.
• E) $2,500.

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Definitions:

Hormones

Biochemical substances produced by various glands throughout the body, acting as messengers that regulate physiological processes and behavior.

Psychologists

Professionals in the study of the mind and behavior, who apply scientific methods to understand psychological functions and help individuals enhance their well-being.

Gland

An organ in the body that secretes particular chemical substances for use in the body or for discharge into the surroundings.

Replication

The process of conducting a study again, following the same methodology, to determine if the original findings are reproducible and valid.