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Lawn, Inc. has decided to discontinue manufacturing its Quantum model credit card reader. Currently the company has a number of partially completed readers on hand.
Lawn, Inc. has decided to discontinue manufacturing its Quantum model credit card reader. Currently the company has a number of partially completed readers on hand. The company has spent $ 107 per unit to manufacture these credit card readers. To complete each unit, costs of $ 14 for material and $ 17 for direct labor will be incurred. In addition, $ 9 of variable overhead and $ 35 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit If Lawn, Inc, completes the readers, it can sell them for $ 127 per unit. Another manufacturer is interested in purchasing the partially completed readers for $111 per unit and converting them into inventory tracking devices. Determine whether Lawn should complete the credit card readers or sell them in their current state. Lawn, Inc., should The company will be better off by $ per unit
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