Question
La Mesa manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $65. Production costs are $37 variable and $15 fixed. La
La Mesa manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $65. Production costs are $37 variable and $15 fixed. La Mesa is considering staining and sealing the table to sell it for $107. Variable costs to finish each table are expected to be $20, and fixed costs are expected to be $3. Prepare an analysis showing whether La Mesa should sell unpainted or finished tables. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
Net Income Increase (Decrease) | |||
Incremental revenue | $enter a dollar amount | ||
Incremental cost | enter a dollar amount | ||
Increase (decrease) in contribution margin | $enter a total amount |
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