Walton, Inc. makes an unassembled product that it currently sells for $55. Production costs are $20. Walton is considering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12. What decision should Walton make?

(a) Sell before assembly; net income per unit will be

$12 greater.

(b) Sell before assembly; net income per unit will be

$1 greater.

(c) Process further; net income per unit will be $13 greater.

(d) Process further; net income per unit will be $1 greater.

AppendixLO1