Ahngram Corp.has 1,000 defective units of a product that cost $3 per unit in direct costs and $6.50 per unit in indirect cost when produced last year.The units can be sold as scrap for $4 per unit or reworked at an additional cost of $2.50 and sold at full price of $12.The incremental net income (loss)from the choice of reworking the units would be:
A)$5,500.
B)$0.
C)($2,500).
D)$10,500.
E)$2,500.

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The Answer of Ahngram Corp.has 1,000 defective units of a product that cost $3 per unit in direct costs and $6.50 per unit in indirect cost when produced last year.The units can be sold as scrap for $4 per unit or reworked at an additional cost of $2.50 and sold at full price of $12.The incremental net income (loss)from the choice of reworking the units would be:
A)$5,500.
B)$0.
C)($2,500).
D)$10,500.
E)$2,500.