The Consumer Products division of Standard Appliances has been struggling lately. Management has noticed a steady level of losses being reported, and is concerned about how to turn the division around. The division manager reports that the production of Toasters is causing the issue. As part of an in-depth analysis, management wants you to evaluate the following possible solution.
Management is aware that Standard Appliances has the capability to become a supplier of the internal hardware of toasters for other manufacturing companies, rather than sell the toasters as finished goods to wholesalers.
Using the above information to contrast the costs and revenues that would result from selling the appliances unfinished vs finishing them, which option would be the most profitable (without considering other qualitative issues)?

Question

The Consumer Products division of Standard Appliances has been struggling lately. Management has noticed a steady level of losses being reported, and is concerned about how to turn the division around. The division manager reports that the production of Toasters is causing the issue. As part of an in-depth analysis, management wants you to evaluate the following possible solution.
Management is aware that Standard Appliances has the capability to become a supplier of the internal hardware of toasters for other manufacturing companies, rather than sell the toasters as finished goods to wholesalers.
  Using the above information to contrast the costs and revenues that would result from selling the appliances unfinished vs finishing them, which option would be the most profitable (without considering other qualitative issues)?

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The Answer of The Consumer Products division of Standard Appliances has been struggling lately. Management has noticed a steady level of losses being reported, and is concerned about how to turn the division around. The division manager reports that the production of Toasters is causing the issue. As part of an in-depth analysis, management wants you to evaluate the following possible solution.
Management is aware that Standard Appliances has the capability to become a supplier of the internal hardware of toasters for other manufacturing companies, rather than sell the toasters as finished goods to wholesalers.
  Using the above information to contrast the costs and revenues that would result from selling the appliances unfinished vs finishing them, which option would be the most profitable (without considering other qualitative issues)?

The Consumer Products Division of Standard Appliances Has Been Struggling