Peter Cruz, the plant manager of Crystal Clear, obtains the following information for Job #10 in August
2010. A total of 32 units were started, and 7 spoiled units were detected and rejected at final inspection,
yielding 25 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the
inspection point are $1,450 per unit. The current disposal price of the spoiled units is $230 per unit. When the
spoilage is detected, the spoiled goods are inventoried at $230 per unit.