Walloon Company Produced 150 Defective Units Last Month at a Unit

question 5

Multiple Choice

Walloon Company produced 150 defective units last month at a unit manufacturing cost of $30. The defective units were discovered before leaving the plant. Walloon can sell them as is for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. The total relevant cost of reworking the defective units is

• A) $4,500.
• B) $6,750.
• C) $7,500.
• D) $3,000.
• E) $2,250.

---

Definitions:

Public Sector Employment

Jobs provided by government entities at the federal, state, or local levels.

Inner-City Joblessness

High rates of unemployment among residents of densely populated, urban neighborhoods, typically resulting from a combination of economic, social, and educational disadvantages.

Microfinance

A type of banking service provided to unemployed or low-income individuals or groups who have no other access to financial services.

Financial Services

Economic services provided by the finance industry, including banks, insurance companies, investment funds, and more.