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bernie2981 bernie2981
wrote...
Posts: 3810
8 years ago
Stooge Enterprises manufactures ceiling fans that normally sell for $90 each. There are 300 defective fans in inventory, which cost $55 each to manufacture. These defective units can be sold as is for $20 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
A) $9,000 net increase in operating income if the ceiling fans are repaired.
B) $21,000 net increase in operating income if the ceiling fans are sold as is.
C) $21,000 net increase in operating income if the ceiling fans are repaired.
D) $9,000 net increase in operating income if the ceiling fans are sold as is.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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wrote...
8 years ago
A
bernie2981 Author
wrote...
8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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