Question
Finn Enterprises manufactures ceiling fans that normally sell for $90 each. There are 340 defective fans in inventory, which cost $60 each to manufacture. These
Finn Enterprises manufactures ceiling fans that normally sell for $90 each. There are 340 defective fans in inventory, which cost $60 each to manufacture. These defective units can be sold as is for $24 each, or they can be processed further for a cost of $42 each and then sold for the normal selling price. Stooge Enterprises would be better off by
A. $8,160 net increase in operating income if the ceiling fans are repaired.
B. $22,440 net increase in operating income if the ceiling fans are repaired.
C. $8,160 net increase in operating income if the ceiling fans are sold as is.
D. $22,440 net increase in operating income if the ceiling fans are sold as is
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