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PH Toy is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $36 and PH Toy would sell it for $78. The cost to assemble the product is $25 per unit and PH Toy believes the market would support a price of $102 on the assembled unit. What decision should PH Toy Company 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 $24 per unit.

C) Process further, the company will be better off by $35 per unit.

D) Process further, the company will be better off by $17 per unit.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M944031

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