Ask Question
22 February, 07:45

Concord Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Concord would sell it for $58. The cost to assemble the product is estimated at $22 per unit and the company believes the market would support a price of $75 on the assembled unit. What decision should Concord make?

+5
Answers (1)
  1. 22 February, 07:48
    0
    Concord should not sell the assembled product.

    Explanation:

    Unassembled:

    Sell price: $58 - Cost $24 = Profit $34

    Assembled:

    Sell price: $75 - Cost $46 ($24 + $22) = Profit $29

    Selling the assembled unit decreases the profit of Concord Corporation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Concord Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers