(Solved):Talmont Products has dropped the price per unit of its smartphone product from $1,060 to $500….

 

Question

Talmont Products has dropped the price per unit of its smartphone product from $1,060 to $500. There are some units in work-in-process inventory that have costs of $600 per unit associated with them. Talmont could sell these units in their current state for $400. It will cost Talmont $40 to complete these units so that they can be sold for $500 each.

When the incremental revenues and costs are analyzed, the

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