Walbom Company Produced 200 Defective Units Last Month at a Unit

Multiple Choice

Walbom Company produced 200 defective units last month at a unit manufacturing cost of $40.The defective units were discovered before leaving the plant.Walbom can sell them "as is" for $30 or can rework them at a cost of $25 and sell them at the regular price of $60.What is the total relevant cost of reworking the defective units?

A) $2,250
B) $3,000
C) $5,000
D) $6,750