Question 41

Oriole, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $18. Unassembled units can be sold for $51, while assembled units could be sold for $67 per unit. What decision should Oriole make?

Sell before assembly; the company will save $2 per unit.

Sell before assembly; the company will save $14 per unit.

Process further; the company will save $2 per unit.

Process further; the company will save $16 per unit.

Question 42 Sheridan Company gathered the following data about the three products that it produces: Estimated Sales Present Value before Additional Estimated Sales Product Processing Processing Costs if Processed Further A $9300 $5900 $16400 B 15000 4600 17600 11400 7600 15900 Which of the products should be processed further? Product A All three products Product B Product C