Question: 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

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:

$25 per unit if they sell the units in their current state.

$15 per unit if they complete the units.

$10 per unit if the sell the units in their current state.

$125 per unit if they complete the units.

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