Mink Manufacturing is unsure of whether to sell its product assembled or unassem
ID: 2378482 • Letter: M
Question
Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per unit and the company believes the market would support a price of $170 on the assembled unit. What decision should Mink make?
Sell before assembly, the company will be better off by $40 per unit.
Process further, the company will be better off by $58 per unit.
Process further, the company will be better off by $28 per unit.
Sell before assembly, the company will be better off by $2 per unit.
Sell before assembly, the company will be better off by $40 per unit.
Explanation / Answer
profit = 130-60=70
profit assembled = 170-60-42=68
differents among them is equal to 70-68= 2 this means are 2 dollars per unit