Carson Company's Market for the Model a Has Changed Significantly,and

question 105

Multiple Choice

Carson Company's market for the Model A has changed significantly,and Carson has had to drop the price per unit from $265 to $125.There are some units in the work in process inventory that have costs of $150 per unit associated with them.Carson could sell these units in their current state for $100 each.It will cost Carson $10 per unit to complete these units so that they can be sold for $125 each.
When the incremental revenues and expenses are analyzed,the company is better off by:

• A)$25 per unit if they sell the units in their current state.
• B)$15 per unit if they complete the units.
• C)$10 per unit if the sell the units in their current state.
• D)$125 per unit if they complete the units.

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Definitions:

Testes

The male gonads of the scrotum that produce sperm.

Secondary Sexual Characteristics

Physical features that distinguish the two sexes of a species, but are not directly involved in reproduction.

Maturation

The process of becoming mature, either physically, mentally, emotionally, or a combination of these aspects.

Sperm

The male reproductive cell or gamete of an animal, which is capable of fertilizing the female ovum (egg) to produce offspring.