M4-18 Sell or Process Further

Great Lakes Boat Company manufatures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $5,000. The comapny is evaluating the desireablility of masts, sails, and rigging to the hulls prior to sale at an additional cost of $1,500. The completed sailboats could then be sold for $6,000 each.

Determine whether the comany should sell sailboat hulls or process them further into complete sailboats.Assume sales volume will not be affected.