Answer:
The answer is "$11,480".
Explanation:
Calculate the benefit as illustrated below:
Recovery of costs approved Recovery costs approved
Year-1 $16,000 $8,000
Year-2 $9,600 $12,800
Year-3 $5,760 $7,680
Total cost $40,000
Making a reference to: Cause great costs allowed or permitted
Year-1 $16,000
Year-2 $12,800
Year-3 $7,680 $36,480
Adjusted basis $3,520
Formula:
Recognized Gain = Residual value - Adjusted basis

An ethical dilemma is a difficult situation in which an individual is unable to make a decision, due to moral conflicts. Picking one solution would mean undermining another.
I believe the answer to your question is A.
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Answer:
Net income increase - $4,890
Explanation:
The computation of the effect on net income is shown below:
= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)
= 3,000 pounds × ($13 - $11.37)
= 3,000 pounds × $1.63
= $4,890 increase
For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product
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