Additional processing decision-quantum model personal

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Reference no: EM13863479

Additional Processing Decision. Data Point, Inc. has decided to discontinue manufacturing its Quantum model personal organizer. Currently the company has a number of partially completed personal organizers on hand. The company has spent $110 per unit to manufacture these organizers. To complete each unit, costs of $14 for material and $16 for direct labor will be incurred. In addition, $10 of variable overhead and $32 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit.

If Data Point, Inc., completes the organizers, it can sell them for $130 per unit. Another manufacturer is interested in purchasing the partially completed organizers for $107 per unit and converting them into inventory tracking devices.

Determine whether Data Point, Inc., should complete the personal organizers or sell them in their current state.

Reference no: EM13863479

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