Reference no: EM13256547

Keim, Inc. manufactures baseball gloves that normally sell for $40 each. Keim currently has 1,000 defective gloves in
inventory that have $30 of materials, labor, and overhead assigned to each glove. The defective gloves can either be
completely repaired at a cost of $25 per glove or sold as is at a reduced price of $18 per glove. Keim would be better off
a. $3,000 to sell the gloves at the reduced price.
b. $2,800 to sell the gloves at the reduced price.
c. $15,000 to repair the gloves and sell them at the normal price.
d. $13,000 to repair the gloves and sell them at the normal price.
e. $15,000 to sell the gloves at the reduced price.