Question
Keim, Inc. manufactures baseball gloves that normally sell for $ 40 each. Keim currently has 1,000 defective inventory that have $ 30 of materials, labor,
Keim, Inc. manufactures baseball gloves that normally sell for $ 40 each. Keim currently has 1,000 defective inventory that have $ 30 of materials, labor, and overhead assigned to each glove. The defective gloves can either completely repaired at a cost of $ 25 per glove os sold as is at a reduced price of $ 18 per glove. Keim would better by:
a) 3,000 to sell the gloves at the reduced price
b) 2,800 to sell the gloves at the reduced price
c) 15,000 to repair the gloves and sell them at the normal price
d) 13,000 to repair the gloves and sell them at the normal price
e) 15,000 to sell the gloves at the reduced price
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