Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps...
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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 (A) $3,000 net (B) $ increase in operating income if lamps are repaired. 3,000 net increase in operating income if lamps are sold as is. C $16,500 net increase in operating income if lamps are repaired. D $16,500 net increase in operating income if lamps are sold as is
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