Answer:
Incremental income is $34,220.00
Explanation:
Amount in $
Number of defective units (a) 2,900.00
Cost of production per unit (b) 14.90
Total cost of production (c = a x b) 43,210.00
Proceed from sale of defective product per unit (d) 5.90
Sale of defective product (e = d x a) 17,110.00
Additional cost for correction of defect (f) 5.10
Cost for correction of defect (g = f x a) 14,790.00
Selling price per unit after correction of defect (h) 22.80
Sales after correction of defect (i = h x a) 66,120.00
Incremental Income from sale (j = i - g - e) <u> 34,220.00</u>
