## MA07 - Q16 ## Tigard, Inc. is reducing the sales price of it's smart television, which was originally $375 per unit. Units currently in work in process inventory have production costs of $300 per unit, and they can be sold for $200 per unit. Another option is to do additional work on these units for $20 per unit so they can be sold for $250 per unit. The company is considering the option of throwing away the remaining smart television units that are in work-in-process inventory. What effect would this decision have on net income? Net income would be lower by $375 for each unit discarded. This decision would have no effect on net income. Net income would be lower by $230 for each unit discarded. Net income would be lower by $300 for each unit discarded.

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