Coronado Toy Company is unsure of whether to sell its product assembled or unassembled. The...
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Accounting
Coronado Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $28 and Coronado Toy Company would sell it for $68. The cost to assemble the product is estimated at $24 per unit and Coronado Toy Company believes the market would support a price of $89 on the assembled unit. What decision should Coronado Toy make?
Sell before assembly; the company will be better off by $3 per unit.
Sell before assembly; the company will be better off by $21 per unit.
Process further; the company will be better off by $25 per unit.
Process further; the company will be better off by $16 per unit.
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