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Finn Enterprises manufactures ceiling fans that normally sell for $93 each. There are 310 defective fans in inventory, which cost $58 each to manufacture.
Finn Enterprises manufactures ceiling fans that normally sell for $93 each. There are 310 defective fans in inventory, which cost $58 each to manufacture. These defective units can be sold as is for $23 each, or they can be processed further for a cost of $41 each and then sold for the normal selling price. Stooge Enterprises would be better off by a OA. $8.990 net increase in operating income if the ceiling fans are sold as is. OB. $21,700 net increase in operating income if the ceiling fans are repaired. OC. $21,700 net increase in operating income if the ceiling fans are sold as is. OD. $8,990 net increase in operating income if the ceiling fans are repaired.
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