ACCT 6311-Great Lakes Boat Company manufactures sailboat
by | Mar 18, 2020 | Uncategorized
Instructions: Complete the following assigned problem. Work must be completed in Excel.
(sell or process further decision)
Sell or Process Further
Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold
to boat- yards for $5,000. The company is evaluating the desirability of adding masts, sails, and rigging
to the hulls prior to sale at an additional cost of $1,500. The completed sailboats could then be sold for
$6,000 each.
Required
Determine whether the company should sell sailboat hulls or process them further into complete
sailboats. Assume sales volume will not be affected.
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