Walloon Company produced 150 defective units last month at a unit manufacturing cost of $30. The defective units were discovered before leaving the plant. Walloon can sell them as is for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. The total relevant cost of reworking the defective units is
A) $4,500.
B) $6,750.
C) $7,500.
D) $3,000.
E) $2,250.

Question

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The Answer of Walloon Company produced 150 defective units last month at a unit manufacturing cost of $30. The defective units were discovered before leaving the plant. Walloon can sell them as is for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. The total relevant cost of reworking the defective units is
A) $4,500.
B) $6,750.
C) $7,500.
D) $3,000.
E) $2,250.

Walloon Company Produced 150 Defective Units Last Month at a Unit