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pls specify the solution for each questions Activity #6: Sell Now or Process Further A Benjimen Products makes a wood product in three sizes: small,
pls specify the solution for each questions
Activity #6: Sell Now or Process Further A Benjimen Products makes a wood product in three sizes: small, medium, and large. Currently, the company does not stain any of the products, but market research has indicated that they can be sold with or without a finishing stain. The following information is available: Small Medium Large $1,650 $2,400 $4,400 Sales price after staining Cost of staining $100 $190 $300 Initial sales price Initial cost $1,500 $500 $2,300 $800 $4,000 $1,300 Which products should be processed further? B. Jackson, Inc. currently sells 12,000 units of its product per year for $100 each. Variable costs total $75 per unit. Jackson's manager believes that if a new machine is leased for $147,000 per year, modifications can be made to the product that will increase its retail value. These modifications will increase variable costs by $20 per unit, but Jackson is hoping to sell the modified units for $130 each. a. Should Jackson modify the units or sell them as is? How much will the decision affect profit? b. What is the least Jackson could charge for the modified units to make it worthwhile to modify them? c. The leasing company is willing to negotiate the price of the machine lease. What is the most Jackson would be willing to pay to lease the machine if they plan to charge $130 for the modified unitsStep by Step Solution
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