Karpentry Company Is Unsure of Whether to Sell Its Product

question 82

Multiple Choice

Karpentry Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and Karpentry 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 Karpentry 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 $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.

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