Question
Zang Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and Zang would
Zang Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and Zang would sell it for $66. The cost to assemble the product is estimated at $21 per unit and the company believes the market would support a price of $85 on the assembled unit. What decision should Zang make?
Select one:
A. Sell before assembly, the company will be better off by $1 per unit.
B. Sell before assembly, the company will be better off by $2 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.
E. None of the above.
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