In: Accounting
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 $49. The cost to assemble the product is estimated at $11 per unit and the company believes the market would support a price of $54 on the assembled unit. What decision should Sunland make?
Sell before assembly, the company will be better off by $6 per unit. |
Sell before assembly, the company will be better off by $5 per unit. |
Process further, the company will be better off by $18 per unit. |
Process further, the company will be better off by $14 per unit. |