Answer:
If the units are reworked, income will increase by $5,800.
Explanation:
Giving the following information:
Number of units= 1,000
Sell as-is= $4.3
Rework cost= $2.8
Selling price= $12.9
<u>Because the original cost will remain constant in both options, we will not take them into account.</u>
Sell as-is:
Effect on income= 1,000*4.3= $4,300
Rework:
Effect on income= 1,000*(12.9 - 2.8)
Effect on income= $10,100
If the units are reworked, income will increase by $5,800.
Answer:
$395,850
Explanation:
Calculation for Cushman Company Gross profit
Using this formula
Gross Profit=Sales-Sales discounts-Sales returns and allowances-Cost of goods sold
Let plug in the formula
Gross Profit = $812,000 - $12,180 - $18,270- $385,700
Gross profit= $395,850
Therefore Cushman Company Gross profit will equal $395,850
