Question
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.35 and sold for $64.60. A finished desk can be sold for $76.00.
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.35 and sold for $64.60. A finished desk can be sold for $76.00. The additional processing cost to complete the finished desk is $6.30.
Prepare a differential analysis. Round your answers to two decimal places.
Differential Analysis
Sell Unfinished (Alternative 1) or Process Further into Finished
(Alternative 2) Desks
Sell Unfinished Desks (Alternative 1) Process Further into Finished Desks (Alternative 2) Differential Effects (Alternative 2)
Revenues per desk $. __________ $ _____________ $_________
Costs per desk ________. __________. _________
Profit (loss) per desk. $._________ $ __________ $___________
Should the company sell unfinished desks or process further and sell finished desks?
Oficina Bonita Company should _____
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