Question: Gamma Tech developed a new software package called GAMMA-IT. They produced 100,000 units at a unit cost of $10.00 and a selling price of $25.00

Gamma Tech developed a new software package called GAMMA-IT. They produced 100,000 units at a unit cost of $10.00 and a selling price of $25.00 per unit. They managed to sell 60,000 units. They can sell the remaining units to a corporate client for $9.00 each or discount the price to $15.00 and sell 70% of the leftover units through their sales team. Unsold units will be thrown away. Gamma should: A. Sell the units through sales team since the net benefit is higher. B. Not sell the remaining units to the corporate client because the selling price is $16.00 less than the intended selling price. C. Sell the remaining units through their sales team since the selling price is $6.00 more than the option of selling to the corporate client. D. Not sell the remaining units to the corporate client since this leads to a loss of $1.00 per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!