PH Toy Company Is Unsure of Whether to Sell Its

question 43

Multiple Choice

PH Toy Company is unsure of whether to sell its product assembled or unassembled.The unit cost of the unassembled product is $30 and PH Toy Company would sell it for $65.The cost to assemble the product is estimated at $21 per unit and PH Toy Company believes the market would support a price of $85 on the assembled unit.What decision should PH Toy make?

• 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 $20 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.

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Definitions:

Reticular Fibers

Thin, branching fibers of collagen found in the connective tissue, supporting the soft tissue of organs.

Collagen α-Chains

The triple helical strands that make up collagen, the main structural protein in various connective tissues.

Collagen

The primary structural protein found in skin and other connective tissues, widely known for providing strength and elasticity.

Elastic

A property of materials that allows them to resume their normal shape after being stretched or compressed.