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Walton, Inc

Question 47

Multiple Choice

Walton, Inc.is unsure of whether to sell its product assembled or unassembled.The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $17.Unassembled units can be sold for $55, while assembled units could be sold for $71 per unit.What decision should Walton make?


A) Sell before assembly; the company will save $1 per unit.
B) Sell before assembly; the company will save $15 per unit.
C) Process further; the company will save $1 per unit.
D) Process further; the company will save $16 per unit.

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