Question 1 Marigold Corp. is unsure of whether to sell its product assembled or

Question

Question 1 Marigold Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Marigold would sell it for $44. The cost to assemble the product is estimated at $7 per unit and the company believes the market would support a price of $48 on the assembled unit. What decision should Marigold make? Sell before assembly, the company will be better off by $3 per unit. Sell before assembly, the company will be better off by $4 per unit. O Process further, the company will be better off by $13 per unit. O Process further, the company will be better off by $21 per unit.

Explanation / Answer

Incremental profit(loss) on assembled product=(48-44)-7 = -3 Option 1 sell before assembly, the company will be better off by $3 per unit is correct

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