As COVID has us sheltering in place and gyms are closed, LifeCycle Exercise bikes have been selling like hotcakes. Currently, the bike, with seemingly 5,000 pieces, is sold unassembled for $1,700. Customers have been inquiring if LifeCycle would consider assembling the exercise bikes. Research has shown that to be in line with other competitors who sell assembled bikes, the most LifeCycle could charge for an assembled bike is $2,000. The labor cost to assemble those 5,000 parts is $500 in today's essential labor market.

Currently LifeCycle has 1,000 exercise bikes in inventory.LifeCycle should offer the exercise bicycles assembled as it would increase net income $300,000 if it sold all of them assembled.

Group of answer choices

True

False