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Problem 10 . Sell now or later. Rockwell Corporation has 12,000 units of product Laos, a high-end men's wear, in storage. This product is now
Problem 10 . Sell now or later. Rockwell Corporation has 12,000 units of product Laos, a high-end men's wear, in storage. This product is now out-of-fashion but is expected to regain market acceptance in the next 10 months. The total cost of producing the product is P240,000, sixty percent of which is variable. It is now kept in a special storage of which the company pays monthly rental of P8,000. The product has a regular sales price of P20 per unit but is expected to be sold at P14 per unit when fashion acceptability recovers. A merchandiser has offered to buy all the 12,000 units of product Laos at a price of P8 per unit who will be picking up the products in the company's storage. Should the company sell now or sell the products later
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