Question

Buyer Beware Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and Buyer Beware Toy would sell it currently for $65. The cost to assemble the product is estimated at $21 per unit and the company believes the market would support a new price of $85 on the assembled unit. What decision should be made about whether to sell or process further?
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.

Answer 1

I think it $1 per unit