Stooge Enterprises Manufactures Ceiling Fans That Normally Sell for $93

Multiple Choice

Stooge Enterprises manufactures ceiling fans that normally sell for $93 each. There are 320 defective fans in inventory, which cost $58 each to manufacture. These defective units can be sold as is for $21 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) $23,040 net increase in operating income if the ceiling fans are repaired.
B) $10,240 net increase in operating income if the ceiling fans are sold as is.
C) $10,240 net increase in operating income if the ceiling fans are repaired.
D) $23,040 net increase in operating income if the ceiling fans are sold as is.