Question 17.5: Alpha Computer makes power supplies that have a variable cos...

Financial Analysis and Decision Making: Tools and Techniques to Solve Financial Problems and Make Effective Business Decisions

Alpha Computer makes power supplies that have a variable cost of $18 and sell for $30. Alpha also has the ability to assemble computers by adding purchased components to their power supplies. Variable costs for the finished computers are $250, and they can sell them for $300. Should Alpha sell power supplies, or add other components and sell finished computers?

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