FlyDucks is deciding whether to sell its current model as is or process it further to create an enhanced model. The unit cost of the current model is $24 and would sell for $52. The company would incur further processing costs of $17 per unit and would sell for $68. What should FlyDucks do?
A) Process further, the company will make an additional $23 per unit.
B) Process further, the company will make an additional $11 per unit.
C) Sell the current model, the company will show an increased profit of $1 per unit.
D) Sell the current model, the company will show an increased profit of $16 per unit.
Correct Answer:
Verified
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