Outdoor Oasis,Inc Refer to Outdoor Oasis,Inc

Outdoor Oasis,Inc.
Outdoor Oasis,Inc.has just finished its first year of business.Outdoor Oasis,Inc.makes decorative outdoor furniture.The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000;100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound).No defective units could be reworked.During the year the following costs were incurred:
$\begin{array}{l}\text { Total rppraisal cost }&\$ 9,000 \\\text { Total prevention cost }&25,700 \\\text { Total production cost } &250,000\\\text { Total selling and administrative cost }&70,000\end{array}$

Refer to Outdoor Oasis,Inc.Compute the total profits lost by the company from selling scrap units during its first year of operations.

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Price for good units:$456,000...

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