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AP Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $750. Production costs per unit are $400 variable
AP Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $750. Production costs per unit are $400 variable and $100 fixed. Mesa Verde is considering staining and sealing the table to sell it for $1,000. Variable costs per unit to finish each table are expected to be an additional $190 per unit, and fixed costs are expected to be an additional $30 per unit. Submit an analysis showing whether Mesa Verde should sell unpainted or finished tables.
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