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    Profit for reworking material rather than selling it as scrap

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    Hodge Inc. has some material that originally cost $73,300. The material has a scrap value of $57,100 as is, but if reworked at a cost of $1,600, it could be sold for $54,400. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?

    -$4,300
    $4,100
    -$5,100
    -$4,700

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    https://brainmass.com/business/accounting/profit-reworking-material-instead-selling-scrap-211975

    Solution Preview

    Hodge Inc. has some material that originally cost $73,300. The material has a scrap ...

    Solution Summary

    This provides the steps to calculate the profit for reworking material rather than selling as scrap

    $2.19

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