19. Chang Industries has already spent $230,000 to produce tables. Those tables can be sold as is for $442,000. Alternatively, the tables can be processed further by finishing them with a stain for an additional cost of $150,000. The stained tables can be sold for $620,000. Chang should:

Group of answer choices

A) Sell the unfinished tables for incremental income of $212,000.

B) Finish the tables for incremental income of $28,000

C) Sell unfinished tables for incremental revenue of $390,000.

D) Finish the tables for incremental income of $178,000.

20. Factor Company estimates that producing a unit of product would require $8 per unit of direct materials and $24 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $16 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $46 per unit. Factor Company should choose to:

Group of answer choices

A) Buy since the relevant cost to make it is $48.

B) Make since the relevant cost to make it is $48.

C) Buy since the relevant cost to make it is $56.

D) Make since the relevant cost to make it is $32.

21. Kobe Company has manufactured 200 partially finished cabinets at a cost of $100,000. These can be sold as is for $120,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $24,000, and the finished cabinets could be sold for $160,000. If Kobe Company processes the cabinets further, incremental income is:

Group of answer choices

A) $76,000

B) $40,000

C) $16,000

D) $60,000