Multiple Choice
Assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price as scrap.This would have no effect on the company's other sales.What cost is relevant as a guide for setting a minimum price on these defective units?
A) $1.50 per unit.
B) $3.50 per unit.
C) $5.00 per unit.
D) $6.50 per unit.
Correct Answer:
Verified
Correct Answer:
Verified
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