Anyone know accounting...i dont know how to do this!!!!?

FAVORR!!!?

PLEASEE...make my satuurday night...anyone know the correct answer to this one...i am LOST and this is gonna be on the final!

Roxie Company has 16,900 units of its sole product that it produced last year at a cost of $39 each. This year's model is superior to last year's and the 16,900 units cannot be sold for their regular selling price of $74 each. Roxie has two alternatives for these items: (1) they can be sold to a wholesaler for $28 each, or (2) they can be reworked at a total cost of $458,000 and then sold for $54 each. The company has enough idle capacity to rework these items without affecting any new production. Which choice would increase the company's profits the most?

A. Reworking because profit will increase by $458,000 more than scrapping.

B. Reworking, because profit will increase by $18,600 more than scrapping.

C. Scrapping, because profit will increase by $18,600 more than reworking.

D. Scrapping, because profit will increase by $473,200 more than reworking.

THANK YOU SO MUCH!!

1 Answer

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  • aRon
    Lv 4
    9 years ago
    Favorite Answer

    c

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