Company ABC manufactures unpainted furniture for the do$-$it$-$yourself $($DIM$)$ market. It currently sells a table for $$92.$ Production costs per unit are $$41$ variable and $$20$ fixed. The company is considering staining and sealing the table to sell it for $$130.$ Unit variable costs to finish each table are expected to be an additional $$24$ per table, and fixed costs are expected to be an additional $$8$ per table.

Instructions:

$1,$ Prepare an analysis to determine whether the company should sell stained or finished tables.

$2.$ What is your recommendation to Management: Sell as is OR process further? Why?

Sell $AsIs$ Process Further Net Income$\frac{+}{?}$

Selling Price: per unit

Costs per unit:

Variable Costs

Net Income:

Sell As is

Process Further

Net Income $+/-$