Business, 02.04.2020 17:36, fayvetteville
Stooge Enterprises manufactures ceiling fans that normally sell for $94 each. There are 300 defective fans in inventory, which cost $58 each to manufacture. These defective units can be sold as is for $22 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
A. $21,600 net increase in operating income if the ceiling fans are repaired
B. S8,700 net increase in operating income if the ceiling fans are sold as is.
C. S8,700 net increase in operating income if the ceiling fans are repaired.
D. $21,600 net increase in operating income if the ceiling fans are sold as is
Answers: 2
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Stooge Enterprises manufactures ceiling fans that normally sell for $94 each. There are 300 defectiv...
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