Walbom Company Produced 200 Defective Units Last Month at a Unit

question 78

Multiple Choice

Walbom Company produced 200 defective units last month at a unit manufacturing cost of $40.The defective units were discovered before leaving the plant.Walbom can sell them "as is" for $30 or can rework them at a cost of $25 and sell them at the regular price of $60.What is the total relevant cost of reworking the defective units?

• A)$2,250
• B)$3,000
• C)$5,000
• D)$6,750

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Definitions:

Relevant

Pertaining to the matter at hand; applicable or significant in a given context or situation.

4E Framework

A marketing model focusing on four stages: Engage, Educate, Experience, and Extend, to enhance customer interaction with a brand.

Virtually

In essence or effect, if not in fact or reality; used to imply something is so nearly true that for most purposes it can be considered true.

Interactive

Describes technology, media, or processes designed for active participation and engagement between users and the system.