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Finn Enterprises manufactures ceiling fans that normally sell for $90 each. There are 330 defective fans in inventory, which cost $57 each to manufacture. These
Finn Enterprises manufactures ceiling fans that normally sell for $90 each. There are 330 defective fans in inventory, which cost $57 each to manufacture. These defective units can be sold as is for $24 each, or they can be processed further for a cost of $45 each and then sold for the normal selling price. Stooge Enterprises would be better off by a OA. $21,780 net increase in operating income if the ceiling fans are repaired. OB. $21,780 net increase in operating income if the ceiling fans are sold as is. OC. $6,930 net increase in operating income if the ceiling fans are sold as is. OD. $6,930 net increase in operating income if the ceiling fans are repaired.
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