Author Question: Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps ... (Read 136 times)

formula1 · **on:** Jan 4, 2020

Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps 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 $45 each and then sold for the normal selling price. Polly Enterprises would be better off by a
◦ $3,000 net increase in operating income if lamps are repaired.
◦ $3,000 net increase in operating income if lamps are sold as is.
◦ $16,500 net increase in operating income if lamps are sold as is.
◦ $16,500 net increase in operating income if lamps are repaired.

vickyvicksss · **Reply #1 on:** Jan 4, 2020

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