Finance based decision making question

Reference no: EM1356100

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 would sell it for $65. The cost to assemble the product is estimated at $21 per unit and the 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.

Reference no: EM1356100

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