Degner Inc

Multiple Choice

Degner Inc. has some material that originally cost $19,500. The material has a scrap value of $13,300 as is, but if reworked at a cost of $2,100, it could be sold for $14,000. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?

A) -$20,900
B) $11,900
C) -$7,600
D) -$1,400