Question: Whats the correct answer Multiple Choice Question i A company incurred $1,000 in costs to produce 500 units which normally sell for $1,500. Upon inspection,
Whats the correct answer
Multiple Choice Question i A company incurred $1,000 in costs to produce 500 units which normally sell for $1,500. Upon inspection, it was determined the units were defective and reworking the units would cost an additional $1.50 per unit. The defective units can be sold as is for $1.00 each (without rework). How should the company handle the defective units? O Rework because incremental income will be $1,500 Rework because incremental income will be $500. Rework the units which will generate incremental income of $250. Sell as is because incremental income will be $1,500Step by Step Solution
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