Do It! Review 20-4

Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $70. Production costs are $40 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $102. Variable costs to finish each table are expected to be $18, and fixed costs are expected to be $1. Prepare an analysis showing whether Mesa Verde should process the tables further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Sell Unpainted Process Further Net Income Increase (Decrease) Sales per unit Cost per unit Variable $ $ Fixed Total Net income per unit The tables should be