Question
Ivanhoe manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs per unit are $45 variable and $14
Ivanhoe manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs per unit are $45 variable and $14 fixed. Ivanhoe is considering staining and sealing the table to sell it for $102. Variable costs per unit to finish each table are expected to be an additional $17 per unit, and fixed costs are expected to be an additional $2 per unit. Prepare an analysis showing whether Ivanhoe should sell unpainted or finished tables. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses eg. (45).) Sales price per unit Cost per unit Variable Fixed $ $ Sell $ $ Process Further $ $ Net Income Increase (Decrease) SUPPORT
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