8.7-20a Question Help Stooge Enterprises defective units can be sold as is for $

Question

8.7-20a Question Help Stooge Enterprises defective units can be sold as is for $20 each, or they can be processed further for a would be better off by a fans in inventory, which cost $58 each to manufacture. These manufactures celing fans that normally sell for $94 each. There are 300 defective cost of s45 OA $8.700 net increase in operating income if the ceiling fans are sold as is B. $22 200 net increase in operating income if the ceiling fans are sold as is. S8.700 net increase n operating income if the celing fans are repared net increase in operating income if the ceiling fans are repaired

Explanation / Answer

Revenue if repaired 28200 =300*94 Revenue if sold as is 6000 =300*20 Incremental revenue 22200 Less: Additional costs 13500 =300*45 Net income increase 8700 Option C is correct

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