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Question
calico company is starting business and is unsure of whether to sell its product assembled or unassembled. the unit cost of the unassembled product is $90 and calico company would sell it for $180. the cost to assemble the product is estimated at $36 per unit and calico company believes the market would support a price of $232 on the assembled unit. what is the correct decision using the sell or process further decision rule?
a.sell before assembly, the company will be better off by $36 per unit
b.sell before assembly, the company will be better off by $52 per unit
c.process further, the company will be better off by $52 per unit
d.process further, the company will be better off by $16 per unit
Answer
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