Question: Solectric's production cost for the component is $ 5 4 per unit, and it plans to sell the component for $ 7 3 per unit

Solectric's production cost for the component is $

54

per unit, and it plans to sell the component for $

73

per unit to Flextrola. Flextrola incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to customers for $

125

each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $

55

each.

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