Question
Mesa Verde manufactures unpainted furniture for the the do-it yourself (DIY) . It currently sells a table for $66, production costs per unit are $45
Mesa Verde manufactures unpainted furniture for the the do-it yourself (DIY) . It currently sells a table for $66, production costs per unit are $45 variable and $11 fixed.
Mesa is considering staining and sealing the table to sell it for $104. Variable costs per unit to finish each table are expected to be an additional $20 per unit, and fixed
costs are expected to be an additional $2 per unit.
Prepare an analysis showing whether Mesa Verde should sell unpainted or finished tables.
(SELL ) (Process further ) ( Net Income ( increase/ decrease)
Sell price per unit $_____ $_______ $ ________________________
Cost per unit Variable $ _________ $ ______________ $________________________-
Fixed _____________ ___________ $__________________
Total $ ____________ $ ___________ $ ________________________
Net Income per uni t $_______________ $_______________ $_____________________
The table should be ________________________
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