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Great Lakes Boat Company manufactures sailboat hulls at a cost of $4200 per unit. The...

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Accounting

Great Lakes Boat Company manufactures sailboat hulls at a cost of $4200 per unit. The hulls are sold to boat-yards for $5000. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $1500. The completed sale boats could then be sold for $6000 each.

a) Determine whether the company should sell sailboats hulls or process them further into complete sailboats. Assume sales volumes will not be affected.

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