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Satan Company has contacted trucks with an offer to sell it 5,000 of the wickets for $54 each. If trucked makes the wickets, variable costs

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Satan Company has contacted trucks with an offer to sell it 5,000 of the wickets for $54 each. If trucked makes the wickets, variable costs are $48 per unit (DM and DL = $33 and VOH = $15). Fixed costs are $24 per unit; however, $15 per unit is unavoidable. Should trucked make or buy the wickets? A) Buy; savings = $45.000 B) Buy, savings = $15.000 C) M^e; savings = $30,000 D) Make; savings = $ 15,000 23. NF Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and NF Toy would sell it currently for $65. The cost to assemble the product is estimated at $21 per unit and the Company believes the market would support a new price of $85 on the assembled unit. What decision should NF Toy make about whether to sell or process further? A) Sell before assembly, the Company will be better of ! by $1 per unit. B) Sell before assembly, the Company will be better of F by $20 per unit C) Process further, the Company will be better off by $29 per unit D) Process further, the Company will be better off by $14 per unit. 24. Eddy Company is starting business and is unsure of w hither to sell its product assembled or unassembled. The unit cost of the unassembled product is $80 and Eddy Company would sell it currently for $180. The cost to assemble the product is estimated at $36 per unit and Eddy Company believes the market would support a new price of $232 on the assembled unit. What is the correct decision using the sell or process further decision rule? Sell before assembly, the Company will be better off by $36 per unit. Sell before assembly, the Company will be better off by $52 per unit. Process further, the Company will be better off by $52 per unit. Process further, the Company will be better off by $ 16 per unit A Company has a process that results in 15,000 pounds of Product A that can be sold now for $1 per pound. An alternative would be to process Product A further at a cost of $100,000 and they sell it at a new price of SI 4 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action? Process further, the Company will be better off by $ 10,000. Sell now, the Company will be better off by SI 0,000. Process further, the Company will be better off by $90,000. Sell now, the Company will be better off by $1 00,000

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