Finn Enterprises manufactures celling fans that normally sell for $90 each. There are 300 defective fans in inventory, which cost $60 each to manufacture These defective units can be sold as is for $25 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 $7.200 net increase in operating income if the ceiling fans are sold as is OB. $19,500 net increase in operating income if the celling fans are repaired. OC. $19,500 net increase in operating income if the celling fans are sold as is OD. 57,200 net increase in operating income if the celling fans are repaired CID

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q4. 

Finn Enterprises manufactures celling fans that normally sell for $90 each. There are 300 defective fans in inventory, which cost $60 each to manufacture These defective units can
be sold as is for $25 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 $7.200 net increase in operating income if the ceiling fans are sold as is.
OB. $19,500 net increase in operating income if the celling fans are repaired.
OC. $19,500 net increase in operating income if the ceiling fans are sold as is
OD. 57,200 net increase in operating income if the celling fans are repaired
CITED
Transcribed Image Text:Finn Enterprises manufactures celling fans that normally sell for $90 each. There are 300 defective fans in inventory, which cost $60 each to manufacture These defective units can be sold as is for $25 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 $7.200 net increase in operating income if the ceiling fans are sold as is. OB. $19,500 net increase in operating income if the celling fans are repaired. OC. $19,500 net increase in operating income if the ceiling fans are sold as is OD. 57,200 net increase in operating income if the celling fans are repaired CITED
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