Sasha Company Produced 50 Defective Units Last Month at a Unit

Multiple Choice

Sasha Company produced 50 defective units last month at a unit manufacturing cost of $40.The defective units were discovered before leaving the plant.Sasha 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.Which of the following is NOT relevant to the sell-or-rework decision?

A) $25 for rework
B) $30 selling price of defective units
C) $40 manufacturing cost
D) $60 regular selling price