Benson Company has 100 units of an obsolete part. The variable cost to produce them was $4 per unit. They could now be sold for $3 each and it would cost $6 to make them now. The parts could be reworked for $8 each and sold for $17. What is the monetary advantage of reworking the parts over the next-best action? Group of answer choices$1,200. $2,000. $2,400. $ 300. $1,000. $ 600.
Benson Company has 100 units of an obsolete part. The variable cost to produce them was $4 per unit. They could now be sold for $3 each and it would cost $6 to make them now. The parts could be reworked for $8 each and sold for $17. What is the monetary advantage of reworking the parts over the next-best action? Group of answer choices$1,200. $2,000. $2,400. $ 300. $1,000. $ 600.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Benson Company has 100 units of an obsolete part. The variable cost to produce them was $4 per unit. They could now be sold for $3 each and it would cost $6 to make them now. The parts could be reworked for $8 each and sold for $17. What is the monetary advantage of reworking the parts over the next-best action?
Group of answer choices$1,200.
$2,000.
$2,400.
$ 300.
$1,000.
$ 600.
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