A company has the choice of either selling 1,000 unfinished units as is or completing them.The company could sell the unfinished units as is for $4.00 per unit.Alternatively,it could complete the units with incremental costs of $1.00 per unit for direct materials,$2.00 per unit for direct labor,and $1.50 per unit for overhead,and then sell the finished units for $8.00 each.What should the company do?
A)Sell the units as is.
B)Finish the units.
C)It does not matter because both alternatives have the same result.
D)Neither sell nor finish because both alternatives produce a loss.Instead,the company should store the units permanently.
E)Donate the units.

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The Answer of A company has the choice of either selling 1,000 unfinished units as is or completing them.The company could sell the unfinished units as is for $4.00 per unit.Alternatively,it could complete the units with incremental costs of $1.00 per unit for direct materials,$2.00 per unit for direct labor,and $1.50 per unit for overhead,and then sell the finished units for $8.00 each.What should the company do?
A)Sell the units as is.
B)Finish the units.
C)It does not matter because both alternatives have the same result.
D)Neither sell nor finish because both alternatives produce a loss.Instead,the company should store the units permanently.
E)Donate the units.

A Company Has the Choice of Either Selling 1,000 Unfinished