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FlyDucks Is Deciding Whether to Sell Its Current Model as Is

Question 67

Multiple Choice

FlyDucks is deciding whether to sell its current model as is or process it further to create an enhanced model. The unit cost of the current model is $24 and would sell for $52. The company would incur further processing costs of $17 per unit and would sell for $68. What should FlyDucks do?


A) Process further, the company will make an additional $23 per unit.
B) Process further, the company will make an additional $11 per unit.
C) Sell the current model, the company will show an increased profit of $1 per unit.
D) Sell the current model, the company will show an increased profit of $16 per unit.

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