Question
Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Sunland would
Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Sunland would sell it for $51. The cost to assemble the product is estimated at $18 per unit and the company believes the market would support a price of $62 on the assembled unit. What decision should Sunland make and why?
a Process further because the company will be better off by $17 per unit.
b Process further because the company will be better off by $9 per unit.
c Sell before assembly because the company will be better off by $11 per unit.
d Sell before assembly because the company will be better off by $7 per unit.
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