PH Toy Is Unsure of Whether to Sell Its Product

question 50

Multiple Choice

PH Toy 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.

---

Definitions:

Core Self-Evaluations

A personality assessment theory that describes fundamental assessments individuals make about their own abilities and worth.

Employee Engagement

The level of an employee's psychological investment in their organization, characterized by enthusiasm for work, commitment, and a sense of belonging.

Core Self-Evaluations

A personality trait concept that encompasses an individual’s subconscious, fundamental evaluations about themselves, their own abilities, and their control over their environment.

Employee Engagement

The emotional commitment and involvement employees have towards their organization, positively affecting productivity and retention.