Question
Hoover Assemblers Limited is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is Sh 9.000.
Hoover Assemblers Limited is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is Sh 9.000. while the added cost of assembling each unit is estimated at Sh 5,000. Unassembled units can be sold for Sh 22,000 while assembled units could be sold for Sh 31,000 per unit. What decision should Hoover make and why? Select one: A. Sell before assembly, the company will save Sh 5.000 per unit O B. Sell after assembly, the company will earn Sh 4,000 more per unit C. Sell after assembly, the company will earn Sh 5.000 less per unit D. Sell before assembly, the company will earn Sh 4.000 per unit.
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International Trade
Authors: John McLaren
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0470408790, 978-0470408797
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