A company has the choice of either selling 1,000 unfinished units as is or completing them.The company could sell the unfinished units as is for $4.00 per unit.Alternatively,it could complete the units with incremental costs of $1.00 per unit for direct materials,$2.00 per unit for direct labor,and $1.50 per unit for overhead,and then sell the completed units for $8.00 each.If the company completes the units,what is the impact on income?
A)Income will increase by $4,000.
B)Income will increase by $500.
C)Income will decrease by $4,500.
D)Income will decrease by $500.
E)Income will increase by $8,000.

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The Answer of A company has the choice of either selling 1,000 unfinished units as is or completing them.The company could sell the unfinished units as is for $4.00 per unit.Alternatively,it could complete the units with incremental costs of $1.00 per unit for direct materials,$2.00 per unit for direct labor,and $1.50 per unit for overhead,and then sell the completed units for $8.00 each.If the company completes the units,what is the impact on income?
A)Income will increase by $4,000.
B)Income will increase by $500.
C)Income will decrease by $4,500.
D)Income will decrease by $500.
E)Income will increase by $8,000.

A Company Has the Choice of Either Selling 1,000 Unfinished