NF Toy Company is unsure of whether to sell its product assembled or unassembled

Question

NF Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and NF 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 pr ice of $85 on the assembled unit. What decision should NF Toy make? Process further, t he company will be better off by $14 per unit. Sell before assembly, t he company will be better off by $1 per unit. Sell before assembly, t he company will be better off by $20 per unit. Process further, t he company will be better off by $29 per unit.

Explanation / Answer

sell before assembly, the company will be better off by $1 per unit

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