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Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at the cost of $4,200 per unit. The hulls are sold to boatyards for
Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at the cost of $4,200 per unit. The hulls are sold to boatyards for $5,000 each. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $1,500 per unit. The completed sailboats could then be sold for $7,000 each. Required: Determine whether the company should sell sailboat hulls or process them further into complete sailboats. Clearly state your answer and flentify the impact on net income. Assume sales volumes will not be affected. Show your work
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