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

question 103

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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:


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