Select either true or false for the following statements 1. An opportunity cost is the potential benefit that is lost by taking a specific action (Click to select) v (Click to select) v (Click to select) Click to select) (Click to select) v when two or more alternative choices are available 2. A sunk cost will change with a future course of action. 3. An out-of-pocket cost requires a current and/or future outlay of cash. 4. Relevant costs are also known as unavoidable costs. 5. Incremental costs are also known as differential costs A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.20 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. If the units are sold as is, the company will also be able to build 19,000 replacement units at a cost of $5.20 each, and sell them at the full price of $9.70 each. (1) What is the incremental income from selling the units as scrap? (Omit the "$" sign in your response.) Incremental income (2) What is the incremental income from reworking and selling the units? (Omit the "$" sign in your response.) Incremental income $ (3) What must the company decide? The units should not be reworked The units should be reworked