MC Qu. 47 Chang Industries has... Chang Industries has 1,400 defective units of product that have already cost $13.40 each to produce. A salvage company will purchase the defective units as they are for $4.40 each. Chang's production manager reports that the defects can be corrected for $6.60 per unit, enabling them to be sold at their regular market price of $19.80. The incremental income or loss on reworking the units is:
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MC Qu. 47 Chang Industries has... Chang Industries has 1,400 defective units of product that have al...
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