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Easy Does It manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a childs rocking chair for $25. Production costs are $12 variable
Easy Does It manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a childs rocking chair for $25. Production costs are $12 variable and $8 fixed. Easy Does It is considering painting the rocking chair and selling it for $35. Variable costs to paint each chair are expected to be $9, and fixed costs are expected to be $2.Prepare an analysis showing whether Easy Does It should sell unpainted or painted chairs. explain the solution
Process Further $35 21a Sell $25 12 8 Revenues Variable costs Fixed costs Net income Net Income Increase (Decrease) $10 (9) (2) $ (1) 10b $ 5 $ 4 a$12 + $9 b$8 + $2Step by Step Solution
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