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Stooge Enterprises manufactures ceiling fans that normally sell for $95 each. There are 340 defective fans in inventory, which cost $55 each to manufacture. These
Stooge Enterprises manufactures ceiling fans that normally sell for $95 each. There are 340 defective fans in inventory, which cost $55 each to manufacture. These defective units can be sold as is for $24 each, or they can be processed further for a cost of $43 each and then sold for the normal selling price. Stooge Enterprises would be better off by a O A. $24,140 net increase in operating income if the ceiling fans are sold as is. O B. $24,140 net increase in operating income if the ceiling fans are repaired. O C. $9,520 net increase in operating income if the ceiling fans are repaired. OD. $9,520 net increase in operating income if the ceiling fans are sold as is. Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $49,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $20,000,000 for the golfing season. About 440,000 golfers are expected each year. Variable costs are about $15 per golfer. The Mountaintop golf course is a price -taker and won't be able to charge more than its competitors who charge $82 per round of golf. What profit will it earn in terms of dollars? O A. $22,680,000 O B. $(20,000,000) OC. $9,480,000 OD. $(9,480,000)
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