Creative Hats produces hats that normally sell for $$55$ each. Creative currently has $400$ defective hats in inventory that have $$35$ of material, labor and

overhead costs already incurred to make each hat. The defective hats can either be completely repaired at an additional cost of $$25$ per hat or sold as is at a

reduced price of $$18$ per hat. Creative would be better off by:

Multiple Choice

$$2,800$ to sell the hats at the reduced price

$$2,000$ to sell the hats at the reduced price

$$5,200$ to sell the hats at the reduced price

$$4,800$ to repair the hats and sell them at the normal price

none of the answers are correct