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Finn Enterprises manufactures ceiling fans that normally sell for $92 each. There are 320 defective fans in inventory, which cost $60 each to manufacture. These
Finn Enterprises manufactures ceiling fans that normally sell for $92 each. There are 320 defective fans in inventory, which cost $60 each to manufacture. These defective units can be sold as is for $20 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 OA. $23,040 net increase in operating income if the ceiling fans are repaired. OB. $9,600 net increase in operating income if the ceiling fans are repaired. OC. $23,040 net increase in operating income if the ceiling fans are sold as is. O D. $9,600 net increase in operating income if the ceiling fans are sold as is.
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