Instructions: Complete the following assigned problem.
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.