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

ID: 2462196 • Letter: N

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 price of $85 on the assembled unit. What

decision should NF 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.

A) Sell before assembly, the company will be better off by $1 per unit.

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