Zanatech's market for its remote control has changed significantly and Zanatech has had to drop the selling price per unit from $45 to $38. There are some units in the work in process inventory that have costs of $30 per unit associated with them. Zanatech can sell these units in their current state for $22 each. It will cost Zanatech $11 per unit to rework these units so that they can be sold for $38 each. How much is the financial impact if the units are processed further? O $16 per unit profit O $3 per unit loss O $5 per unit profit O $12 per unit loss

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zanatech's market for its remote control has changed significantly and Zanatech has had to drop the selling price per unit from $45 to
$38. There are some units in the work in process inventory that have costs of $30 per unit associated with them. Zanatech can sell
these units in their current state for $22 each. It will cost Zanatech $11 per unit to rework these units so that they can be sold for $38
each. How much is the financial impact if the units are processed further?
$16 per unit profit
$3 per unit loss
$5 per unit profit
O $12 per unit loss
Transcribed Image Text:Zanatech's market for its remote control has changed significantly and Zanatech has had to drop the selling price per unit from $45 to $38. There are some units in the work in process inventory that have costs of $30 per unit associated with them. Zanatech can sell these units in their current state for $22 each. It will cost Zanatech $11 per unit to rework these units so that they can be sold for $38 each. How much is the financial impact if the units are processed further? $16 per unit profit $3 per unit loss $5 per unit profit O $12 per unit loss
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