"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"

We know that Profit = Earnings  - Cost

Case 1: Sold as is

Profit = (300 fans* $20/fan) - (300 fans* $55/fan)

Profit = - $10, 500 (deficit)

Case 2: Processed further then sell

Profit = (300 fans* $90/fan) – [(300 fans* $55/fan) + (300 fans* $40/fan)]

Profit = - $1, 500 (deficit)

Since Case 2 has lower deficit, then it is better to process the fans further then sell to normal selling price.

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.