The Best Bottling Company manufactures soda bottles that are recyclable. They have currently amassed 320,000 defective bottles that can be sold "as is" at
$0.15
per bottle for scrap or they can correct the defect and sell the product at their regular price of
$0.70
per bottle. If the cost to process further and correct the defect they will incur additional costs of
$189,000
. What will be the net benefit to operating income if they process further?
◻
A. The overall benefit to operating income will be a loss of
$13,000
.
◻
B. The additional revenue will exceed the "as is" revenue by
$176,000
.
q,
C. The increase in additional costs will reduce the net benefit by
$189,000
.
D. All of the above.