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Stooge Enterprises manufactures ceiling fans that normally sell for $91 each. There are 310 defective fans in inventory, wh ch cost $66 each to
Stooge Enterprises manufactures ceiling fans that normally sell for $91 each. There are 310 defective fans in inventory, wh ch cost $66 each to manufacture. These defective units can be sold as is for $23 each, or they can be processed further for a cost of $40 each and then sold for the normal selling price. Stooge Enterprises would be better off by a $21 ,080 net Increase in operating income Ifthe ceiling fans are sold as is. $8,680 net Increase In operating income if the ceiling fans are sold as is. $8,680 net increase in operating income if the ceiling fans are repaired. $21 ,080 net Increase In operating income If the ceiling fans are repaired.
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