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Stooge Enterprises manufactures ceiling fans that normally sell for $93 each. There are 320 defective fans in inventory, which cost $58 each to manufacture. These
Stooge Enterprises manufactures ceiling fans that normally sell for $93 each. There are 320 defective fans in inventory, which cost $58 each to manufacture. These defective units can be sold as is for $21 each, or they can be processed further for a cost of $40 each and then sold for the normal selling price. Stooge Enterprises would be better off by a Select one: a. $23,040 net increase in operating income if the ceiling fans are repaired. b. $10,240 net increase in operating income if the ceiling fans are sold as is. c. $10,240 net increase in operating income if the ceiling fans are repaired. d. $23,040 net increase in operating income if the ceiling fans are sold as is. * The correct answer is: $10,240 net increase in operating income if the ceiling fans are repaired
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