Business, 06.08.2021 16:00 katietinary1657
A company has the choice of either selling 1,000 unfinished units as is or completing them. The company could sell the unfinished units as is for $4.00 per unit. Alternatively, it could complete the units with incremental costs of $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead, and then sell the completed units for $8.00 each.
1. What should the company do?
2. If the company completes the units, what is the impact on income?
a. Income will increase by $4,000.
b. Income will increase by $500.
c. Income will decrease by $4,500.
d. Income will decrease by $500.
e. Income will increase by $8,000.
Answers: 2
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A company has the choice of either selling 1,000 unfinished units as is or completing them. The comp...
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