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Mann Lake produces unassembled Bee Boxes. Each unassembled bee box costs Mann Lake $20.00 to manufacture, and are sold for $55.00 each. The CEO at
Mann Lake produces unassembled Bee Boxes. Each unassembled bee box costs Mann Lake $20.00 to manufacture, and are sold for $55.00 each. The CEO at Mann Lake has asked the managerial accounting dept. to analyze the effect on net income, if the company sold the bee boxes assembled. Assembly would require $12 in direct labor. The assembled bee box would then be sold for $68.00 What would you recommend to the CEO and what would the effect be on net income? process further, net income per unit will be $1 greater process further, net income per unit will be $13 greater sell without assembly; net income per unit will be $12 greater. sell without assembly, net income per unit will be $1 greater
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