Question
Bramble Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Bramble would
Bramble Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Bramble would sell it for $60. The cost to assemble the product is estimated at $27 per unit and the company believes the market would support a price of $79 on the assembled unit. What decision should Bramble make? Sell before assembly, the company will be better off by $8 per unit. Process further, the company will be better off by $16 per unit. Sell before assembly, the company will be better off by $19 per unit. Process further, the company will be better off by $9 per unit.
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