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.
Correct Answer:
Verified
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