Z-Tech mistakenly produced 10,000 defective cell phones. The phones cost $60 each to produce. A salvage company

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Z-Tech mistakenly produced 10,000 defective cell phones. The phones cost $60 each to produce. A salvage company will buy the defective phones as they are for $30 each. It would cost Z-Tech $80 per phone to rework the phones. If the phones are reworked, Z-Tech could sell them for $125 each. Compute the incremental net income from reworking the phones.

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Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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