Swift Skateboards sells unassembled skateboards for $65 each. Variable production costs for each board are $10 and
Question:
Swift Skateboards sells unassembled skateboards for $65 each. Variable production costs for each board are $10 and fixed production costs are $18. Swift is considering selling the skateboards fully assembled for $72 each. It estimates variable costs for assembling one board will be $3 and fixed costs will be $7. In order for the assembled boards to be more profitable than the unassembled boards, Swift must either,
Select answer from the options below increase the sale price of the assembled boards by at least $3 or decrease the fixed costs of assembling the boards by at least $3.
increase the sale price of the assembled boards by at least $3 or decrease the fixed costs of assembling the boards by at least $7.
increase the sale price of the assembled boards by at least $7 or decrease the variable costs of assembling the boards by at least $3.
increase the sale price of the assembled boards by at least $7 or decrease the fixed costs of assembling the boards by at least $7.
Expert Answer:
Answer To determine whether selling the assembled skateboards would be more profitable than selling ... View the full answer
