Question
Jonathan Corporation makes an unassembled chair that sells for $25. Product costs are $8 per chair. Lois, the product line manager, suggests that Jonathan Corp.
Jonathan Corporation makes an unassembled chair that sells for $25. Product costs are $8 per chair. Lois, the product line manager, suggests that Jonathan Corp. should instead sell an assembled chair, as revenues will be higher.
The market price for the assembled chair would be $30. The cost of additional assembly is $4.
Which of the following statements are true? (Check all that apply.)
1 point
The $4 cost of additional assembly is relevant.
The $4 cost of additional assembly is irrelevant.
The $8 product costs of the unassembled chair are relevant.
The $30 market price for the assembled chair is relevant.
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