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Determine whether the company should sell sailboat hulls

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Reference no: EM133049243

Question - Assume Beneteau manufactures sailboat hulls at a cost of $7,500 per unit. The hulls are sold to boat yards for $9,000. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $2,500. The completed sailboats could then be sold for $10,500 each. Determine whether the company should sell sailboat hulls or process them further into complete sailboats. Assume sales volume will not be affected.

Reference no: EM133049243

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