1. 2. 4a. Exercise 10-6 Scrap or rework LO A1 A company must decide between scra

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4a.

Exercise 10-6 Scrap or rework LO A1 A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.50 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.70 each and then sold for the full price of $8.60 each. If the units are sold as is, the company will be able to build 19,000 replacement units at a cost of $5.50 each, and sell them at the full price of $8.60 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (loss) The company should

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I have solved - first two questions. Please put remaining two as new questions.

Question 1 Sale as Scrap Rework Sales revenue $58,900 $1,63,400 Less: Cost of reworking $0 $89,300 Net revenue $58,900 $74,100 Incremeantal income (Loss) $15,200 The Company should: Rework Question 2 Sale as is Process Further Sales $4,90,000 $11,30,000 Less: Cost of further processing $0 $2,60,000 Income (Loss) $4,90,000 $8,70,000 Incremeantal income (Loss) $3,80,000 The Company should: Process Further

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