Question
Coronado Industries is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Coronado would
Coronado Industries is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Coronado would sell it for $48. The cost to assemble the product is estimated at $11 per unit and the company believes the market would support a price of $52 on the assembled unit. What decision should Coronado make?
Process further, the company will be better off by $13 per unit.
Sell before assembly, the company will be better off by $4 per unit.
Sell before assembly, the company will be better off by $7 per unit.
Process further, the company will be better off by $17 per unit.
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